Series 66

Regulation of Investment Advisors and Investment Advisor Representatives - Investment Advisor Representatives: Definition

An investment advisor (IA) can be either an individual or a company. If you are providing investment advisory services as an employee of an IA, you are actually an investment advisor representative (IAR).

Definition
To paraphrase the USA, an investment advisor representative is:

  • an individual employed by or associated with an investment advisor.
     
  • an individual employed by or associated with a federal covered investment advisor, who makes any recommendations or otherwise gives investment advice regarding securities; manages accounts or portfolios of clients; determines which recommendation or advice regarding securities should be given; and/or provides investment advice.
     
  • anyone who holds herself or himself out as providing investment advice and/or receives compensation for such.
     
  • anyone who supervises employees who perform any of the foregoing.

Look Out!
If a person meets the above criteria for IAR he or she must register with the state.

Look Out!
If you are having trouble with the concept of the investment advisor representative, remember this: an IAR\'s relationship to an IA is similar to that of an agent in relation to a broker-dealer. An IAR represents an investment advisor.




comments powered by Disqus
Trading Center