Triforce Advisors
What Is an Investment Advisory Representative (IAR)?
Investment advisory representatives (IARs) are licensed and authorized personnel who work for investment advisory companies and are permitted to work with clients. The primary responsibility of an IAR is to provide investment-related advice as a financial advisor or financial planner.
In order to become IARs, individuals must pass the appropriate licensing exam or exams and register with the appropriate regulatory bodies.
KEY TAKEAWAYS
- IARs are individuals employed by or associated with an investment advisor who make recommendations or otherwise give financial or investment advice.
- IARs receive compensation by charging fees, either on a commission basis, at a flat or hourly rate, or as a percentage of assets under management (AUM).
- IARs must be properly registered, and, at a minimum, complete credentialing exams certified by FINRA and other required regulatory agencies.
Understanding Investment Advisory Representatives (IARs)
The Uniform Securities Act defines the term investment advisor representative (IAR) as:
“An individual employed by or associated with an investment advisor or federal-covered investment advisor and 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, 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, or supervises employees who perform any of the foregoing.“
