What is a regional broker/dealer in the context of a Registered Investment Advisor (“RIA”)?

Definition: This is an unofficial term that has historically been used to describe W2 broker-dealers, that have generally had an office footprint limited to a specific region of the country. Though many of the firms historically referred to as such, have now grown to have a nationwide presence.

When used in an RIA context: “The financial advisor works for a regional broker-dealer where they provide investment solutions to their clients, and are compensated for the transaction with a commission.”

See also: Episode 127, broker/dealer, BD, W2