Investment adviser representative (IAR)
Also known as: iar, adviser representative
An investment adviser representative (IAR) is an individual who works for an investment adviser firm and provides investment advice, manages accounts, solicits advisory clients, or supervises those who do. IARs register at the state level.
An investment adviser representative (IAR) is a person — always an individual, never a firm — associated with a registered investment adviser who performs advisory functions. That includes making recommendations or giving advice about securities, managing client portfolios, determining which advice should be given, soliciting or negotiating for advisory services, or supervising employees who do any of these things.
The IAR designation separates people from firms. The investment adviser (IA) is the business entity that registers with either the SEC (for larger, federal covered advisers) or the states. The IAR is the human being doing the advisory work for that firm. Even when the firm is a federal covered adviser registered with the SEC, its representatives with a place of business in a state generally must register as IARs in that state.
Not every employee of an advisory firm is an IAR. Clerical and administrative staff who don't give advice or solicit clients are excluded. Most states require IAR candidates to pass a qualification exam — the Series 65, or the Series 66 combined with the Series 7 — before registering.
IAR definitions and registration requirements are core material on the Series 65, Series 66, and Series 63 exams. Expect questions on who counts as an IAR, when state registration is required, and how IARs of federal covered advisers are treated under the Uniform Securities Act.
Key takeaways
- An IAR is an individual who gives investment advice, manages accounts, solicits clients, or supervises advisory activities for an investment adviser firm.
- Firms register as investment advisers; the individuals working for them register as IARs at the state level.
- Clerical and administrative employees who don't advise or solicit are not IARs.
- Most states require the Series 65, or the Series 66 plus Series 7, to qualify as an IAR.
- The Series 63, 65, and 66 exams all test IAR definitions and registration requirements.