Investment Adviser Representative (IAR)
An individual who gives advice or solicits advisory business for an adviser.
What is Investment Adviser Representative (IAR)?
Any individual associated with an investment adviser who makes recommendations, manages accounts, determines which advice is given, solicits or sells advisory services, or supervises people who do. Clerical and administrative staff are not IARs. An IAR of a state-registered adviser registers in the states where they do business; an IAR of a federal covered adviser can be required to register only in states where they have a place of business.
Investment Adviser Representative (IAR): a worked example
A salaried employee who solicits new advisory clients must register as an IAR even though they never give advice.
More terms in Uniform Securities Act & Registration
Uniform Securities Act (USA)
The model state securities law most states' 'blue sky' statutes are based on.
State Securities Administrator
The official or agency that enforces a state's securities act.
Person (USA Definition)
Anyone who can be held legally responsible - individuals and organizations.
Investment Adviser (USA Definition)
Advises on securities, as a business, for compensation.
Excluded from the Investment Adviser Definition
Banks, incidental professionals, broker-dealers, and publishers are not advisers at all.
Exemptions from State Adviser Registration
An adviser with no office in the state and only institutional or very few clients there.
De Minimis Exemption
No place of business in the state and fewer than 6 clients there in 12 months.
Federal Covered Adviser
An adviser registered with the SEC rather than the states.
All Uniform Securities Act & Registration terms · Full glossary