With rising prices across the country, Americans are growing more concerned about their financial future. In a recent study from MarketWatch Guides, nearly 90 percent of respondents reported feeling financial stress. In this tense economic time, many people are turning to registered investment advisers (RIAs) for help.
"The primary benefit of an RIA is the ability to plan your short- and long-term financial goals with an adviser who has experience recommending investments that meet your needs," Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek over email. "They're especially helpful if you have little to no background in investing and need guidance."
But growing a client's assets through personalized planning and strategies is not the only thing a great RIA does—they must also build and maintain trust. When choosing an RIA, one must look beyond the portfolio and consider an adviser's conflicts of interest.
According to the U.S. Securities and Exchange Commission (SEC), RIAs are legally required to always act in their client's best interest. To ensure they are, firms must comply with federal and state regulations and disclose any activity or connections that might put their fiduciary duties at risk.
In Newsweek's latest ranking of America's Top Financial Advisory Firms 2025, more than 15,000 SEC-registered RIAs were evaluated based on overall performance, adviser-client ratio and the breadth of financial services provided. It also identified any wrongdoing that might make them less trustworthy for clients, such as disciplinary actions and conflicts.
Each firm was screened for reputational risks, including legal disputes and scandals within the last two years. The sweep searched for various legal and regulatory actions made against firms by the SEC, the Commodity Futures Trading Commission (CFTC), foreign and domestic courts and federal, state and foreign regulatory authorities.
Disciplinary actions include:
- Revocation, denial, suspension or restriction of business licenses or registrations
- Restriction of authorization to act as an attorney, accountant or federal contractor
- Making false statements or omissions or being found to be dishonest, unfair or unethical
- Felony or misdemeanor convictions
- Monetary penalties or orders to cease and desist from activity by the SEC or CFTC
- Violations of regulations or statutes of the SEC, CFTC, federal, state or foreign regulatory authorities or foreign or domestic courts
RIAs must also file compliance reports with the SEC that list any conflicts to ensure firms do not breach their fiduciary obligations to clients.
These discretions include:
- Being actively engaged in business as a lawyer or law firm, broker-dealer, insurance broker or agent
- Being compensated for investment advisory services by commission
- Being related to someone who works at an insurance company or agency
- Recommending the purchase of securities for which you serve as an underwriter or general or managing partner to advisory clients
- Recommending the purchase or sale of securities for which you have any other sales interest
- Receiving research, products or services other than execution from a broker-dealer or a third party (or soft-dollar arrangements) in connection with client securities transactions
A firm's total score was based on the total market value of its assets under management (AUM) and the compound annual growth rate (CAGR) of revenue in both the past 12 months and also the past five years, as well as other factors, like adviser-client ratio and client retention. Then Newsweek/Plant-A deducted 0.5 percent from a firm's score for each self-reported conflict of interest and excluded firms with serious disciplinary actions against them.
In total, 750 firms across 45 states, the District of Columbia and Puerto Rico were included in the ranking and were rated with four, four and a half, and five stars.
Because RIAs must act solely in the best interest of their clients, regulatory agencies take conflicts of interest very seriously.
Eliminating or at least exposing conflicts strengthens the trust between adviser and client and protects the clients from harm. According to the SEC, "an investment adviser's obligation to act in the best interest of its client is an overarching principle that encompasses both the duty of care and the duty of loyalty."
Prime Capital Financial, formerly known as Prime Capital Investment Advisors, received a five-star rating on Newsweek's ranking. The Kansas-based firm has a total AUM range over $10 billion and an AUM CAGR of 10 to 20 percent over five years.
"We believe that every decision begins and ends with what is best for the client. While many firms focus solely on numbers, we prioritize understanding our clients' broader life goals and creating strategies that support their values and vision," Chief Marketing Officer Terra McBride told Newsweek over email. "Our advisers combine deep technical expertise with a commitment to building meaningful, long-term relationships."
While it should be the goal for all RIAs to eliminate all conflicts of interest, some may persist. That is why current and potential clients should be aware of what each RIA is offering.
Kevin Thompson, founder and CEO of 9i Capital Group LLC, told Newsweek that understanding conflicts of interest helps clients ensure they're being treated fairly and not receiving recommendations solely for the adviser's benefit.
"It's critical to recognize that no business model is entirely free of conflicts," he said over email. "Clients should pay attention to how advisers are compensated."
These conflicts, Thompson said, are disclosed verbally during client meetings or in engagement agreements that clients sign during onboarding. Conflicts may also be presented on a firm's website to ensure clients are making informed decisions about the relationship. Firms are also required to disclose those conflicts in their reports to the SEC and state regulators.
Fort Sheridan Advisors in Highland Park, Illinois, received a five-star rating on Newsweek's list and has a total AUM range of $500 million to $1 billion and an AUM CAGR of 20 to 30 percent over five years.
The firm believes its commitment to transparent communication, personalized service and advanced technology builds loyalty and reduces client attrition, John Brinckerhoff, a strategic adviser for the firm, told Newsweek over email.
The firm has made several technological improvements recently, including switching to client relationship management software, which it says is better for RIAs. Brinckerhoff said this upgrade allows them to streamline operations, improve responsiveness and ensure that the firm is meeting client needs in a timely manner.
Beginning a financial planning journey can be daunting, but getting help can be the first step in reducing money anxiety and achieving personal financial goals.
"The biggest mistake you can make is indecisiveness," financial literacy instructor Alex Beene said. "As stressful as diving into the investment world can be, it's far more stressful not taking the leap and realizing years down the road how much could have been gained."
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