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.

Investment Advisor Representatives: Exclusions

Related Articles
  1. Financial Advisor

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
  2. Financial Advisor

    Vital Considerations for a Transitioning Advisor

    Advisors who are considering breaking away from a big firm should consider these points.
  3. Personal Finance

    What Should You Look for in a Financial Advisor?

    Here are five important considerations for when you are choosing a financial advisor for your investment portfolios and your financial future.
  4. Financial Advisor

    Should You Choose a Fee-only Financial Advisor?

    Is working with a fee-only financial advisor always your best option?
  5. Personal Finance

    Why You Should Find the Right Financial Advisor

    If you find the right one for you, financial advisors offer many value added services.
  6. Financial Advisor

    Can You Afford a Financial Advisor?

    Don't think you can afford a financial advisor? Think again. Here's why you should reconsider hiring an advisor.
  7. Financial Advisor

    How Does Your Financial Advisor Get Paid?

    Some questions to ask your financial advisor about the recommendations they make and how they get paid.
  8. Personal Finance

    How to Find a Financial Advisor/Planner

    How should you go about finding the right financial advisor? The first step is to figure out what sort of professional help you need.
  9. Financial Advisor

    Do You Need A Financial Advisor?

    Not everyone needs a professional. Find out how to make the call.
  10. Financial Advisor

    How to Interview Your Financial Advisor

    When it comes to choosing a financial advisor, investors have to do homework. That means interviewing multiple advisors and asking the tough questions.
Frequently Asked Questions
  1. How did the ABX index behave during the 2008 subprime mortgage crisis?

    Read about the disastrous performance of the various ABX indexes in the subprime mortgage crisis of 2008 during the middle ...
  2. How did moral hazard contribute to the 2008 financial crisis?

    Learn about moral hazard, how it can affect outcomes and how it contributed to the conditions that led to the 2008 financial ...
  3. Which mutual funds made money in 2008?

    Read about the only mutual fund that turned a profit in 2008. Learn about risk-averse investment strategies and the financial ...
  4. Were Collateralized Debt Obligations (CDO) Responsible for the 2008 Financial Crisis?

    Collateralized debt obligations are exotic financial instruments that can be difficult to understand, Learn the role they ...
Trading Center