What is an investment advisor representative?
An investment advisor representative (often called an IAR) is generally defined as a person who, for compensation, (1) makes recommendations for securities, (2) manages client accounts, (3) determines which security recommendations should be given to clients, (4) solicits and sells investment advisory services, and/or (5) supervises employees who perform any of the prior functions.
What’s the difference between an investment advisor (IA) and an investment advisor representative (IAR)?
If an individual meets the state’s definition of an investment advisor and maintains their business or has a certain number of clients within that state, then most states will require the individual to register as an investment advisor representative.
What are the qualifications to be an IAR?
Though each state’s definition of an investment advisor representative can vary, all contain either one or a combination of the following requirements:
- Successfully completed the Series 65 examination
- Maintains good standing as a Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Chartered Financial Consultant (ChFC), or Personal Financial Specialist (PFS).
- Maintains both a Series 7 and Series 66 with a broker-dealer
How does an IAR serve clients?
IARs who work as a Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Chartered Financial Consultant (ChFC), or Personal Financial Specialist (PFS) must maintain good standing in their work to be considered an investment advisor representative. The security recommendation services that an IAR provides include Financial Planning, Retirement Funds (401k and IRAs), Estate Planning and Trusts, and Asset Management.