Regulation of Investment Advisors - Investment Adviser Representatives (IARs)
An investment adviser (IA) can be either an individual or a company. If you are providing investment advisery services as an employee of an IA, you are actually an investment adviser representative (IAR).
If you are listed as a partner, officer, or director of an IA at the time of initial registration, you do not need to register separately as an IAR. If not, you must register as an IAR through your state. Your employing firm will supply the necessary information for registration.
IA employees who perform any of these functions must register as an IAR:
- Making investment recommendations or giving securities advice
- Managing client accounts or portfolios
- Soliciting or offering investment advisery services
- Supervising employees who perform any of the above
IA employees who have only clerical duties do not have to register as IARs.
Watch for questions that ask if an office manager who supervises account managers or solicitors has to register as an IAR. While those who have only clerical duties do not needto register, those who supervise IAR employees must do so.
Exam Tips and Tricks
Watch out for the distinction between an IA and an IAR when you are reading exam questions, since there may be differences in registration requirements. You will likely find a number of questions that refer to both IAs and IARs, such as these two examples:
All of the following statements regarding individuals who transact business in the state are true EXCEPT:
- Investment adviser representatives must register in the state
- Investment advisers must register in the state
- Representatives of federal covered advisers must register in the state
- Federal covered advisers must register in the state
The correct answer is "d", since federal covered advisers are not required to also register with the state.
- The "consent to service of process" must accompany which of the following?
- Investment adviser's initial registration application
- Investment adviser representative's initial registration application
- Investment adviser representative's renewal registration application
- Non-criminal complaint filed against an investment adviser
- II & III
- I & IV
- I & II
- I, II & III
The correct answer is "c" - the consent to service of process is only necessary at the time of initial registration for both investment advisers and investment adviser representatives.
Personal FinanceRIAs and brokers are held to different standards when providing investment advice. Here's how they differ.
Investing BasicsBrokers and registered investment advisors have some key differences. Here's what you need to know.
ProfessionalsUpon successful completion of the Series 6, an individual will have the qualifications needed to sell open end mutual funds and variable annuities
ProfessionalsGunning to be a stock broker and want an edge? Here's some veteran advice.
Trading Systems & SoftwareLaunching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
ProfessionalsSeries 63 is a securities license that entitles the holder to sell securities in a particular state.
ProfessionalsLearn how to answer option questions on the Series 7 exam. Pass your Series 7 exam with the help of these tips.
InsuranceLearn to distinguish between general obligation and revenue bonds to ace this test.
RetirementThese techniques can help you pass this test without the added stress.
InsuranceFind out what you can do during the test to make sure you get a passing score.
A securities license entitling the holder to register as a limited ...
A examination to ensure a candidate is qualified to become a ...
A person who prepares investigative reports on equity securities. ...
An exam required for individuals seeking to engage in off-exchange ...
One who provides financial advice or guidance to customers for ...
An exam offered by the Financial Industry Regulatory Authority ...
The Series 6 Investment Company and Variable Contracts Products Representative Qualification Examination is administered ... Read Full Answer >>
There are several highly acclaimed private Series 6 Exam courses in the United States. Many can be completed online. Popular ... Read Full Answer >>
The Series 6, or the Investment Company Products/Variable Contracts Limited Representative, exam is administered by the Financial ... Read Full Answer >>
The Financial Industry Regulatory Authority (FINRA) offers a variety of licenses that must be obtained before conducting ... Read Full Answer >>
There are no prerequisites to register for the Series 63 exam. However, once you have registered for the exam, you must schedule ... Read Full Answer >>
After having written the Series 6 examination, there would be significant overlap with the Series 7 in areas such as mutual ... Read Full Answer >>