Investment Advisory Representative - IAR
Categories: Banking, Regulations
See: Investment Advisor.
An investment advisory representative is someone who works for or is linked to an investment advisor. The fine folks who brought you the Uniform Securities Act also have this technical explanation of what an investment adviser representative does:
- 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
- Provides investment advice or holds herself or himself out as providing investment advice
- Receives compensation to solicit, offer, or negotiate for the sale of or for selling investment advice
- Supervises employees who perform any of the foregoing
Related or Semi-related Video
Finance: What is an Investment Adviser, ...4 Views
Finance allah shmoop what is an investment advisor or registered
investment adviser All right well an investment advisor with no
other special nomenclature is the guy in your left at
the craps table screaming in your ear play the past
line play the past line he's just advising you as
to where you're going to quote invest unquote your slippery
five bucks But when an investment advisor actually gets serious
they have to register generally in the state or states
in which they're doing business and we mean geographic states
not like euphoria and depression Structurally they have to know
how the markets work all kinds of ethical and fiduciary
obligations that they'll hold for clients they have to understand
the mathematics of brokers and brokerages and the basics of
risk Most registered investment advisors have at least a serious
sixty five exam behind them not a whole lot more
like the series seven a bunch of others mainly because
investments never goes smoothly and someone always ends up getting
sued for bad advice So when firms hire registered investment
advisors they at least want the protection of being able
to point to an exam that the broker past that
Presented basic competence in their understanding of what they were
at least supposed to have done The key The limiter
here between the craps table guy in the registered investment
adviser is compensation Largely The craps table guy offers his
opinion for free The aria charges money or at least
wants to and as soon as cash changes hands and
formal manner while the rules and responsibilities and whole set
of fiduciary obligations get a whole lot less you know 00:01:46.149 --> [endTime] dicey