An adviser is paid for advice, typically as a percentage of assets, a flat fee, or an hourly rate, rather than for executing trades. Registration is with the sec above an asset threshold and with state regulators below it. The governing statute is the investment-advisers-act-1940.
Advisers owe a fiduciary-duty: they must put the client's interest first, seek best execution, disclose conflicts fully, and manage them. That standard is broader than the brokerage standard in regulation-best-interest, though the two have converged.
Public disclosure comes through form-adv, including the plain-English brochure describing fees, strategies, disciplinary history, and conflicts. Advisers with custody of client assets face surprise examinations and independent verification.
Related: form-adv, fiduciary-duty, investment-advisers-act-1940, investment-adviser-representative, regulation-best-interest