Investment advisers Representatives Flashcards
What is an investment advisor representative?
Any partner, director of, or individual employed by or associated with an investment adviser. that is registered or required to ve registered under the USA
What do IARs do?
Makes any recommendations or gives investment advice regarding securities
Manages client accounts or portfolios
Determines the nature of recommendation or advice given
Solicits, offers, or negotiates for the sale of or sells investment advisory services
Supervises employees performing any of these functions
What is a solicitor?
A solicitor is a person who refers potential clients to an investment adviser for compensation.
Do IARs of federal covered advisers need to register with the state?
IARs of federal covered advisers are required to register in the state where their office is located.
They do not register based on the location of their clients and only register at the state level.
There is no federal registration of IARs.
Who is not defined as an IAR?
An employee of an investment adviser who performs only clerical or ministerial functions is not defined as an IAR and is excluded.
can an IA hire an unregistered IAR?
Investment advisers cannot hire unregistered investment adviser representatives and are prohibited from hiring anyone the Administrator has barred or suspended from working with a broker-dealer or investment adviser.
what happens if an IA loses its registration?
. If an investment adviser loses its registration, investment adviser representatives registered with that firm will lose their registration too, until they register with another investment adviser.
when does an IAR have to register for the state?
An investment adviser representative (IAR) working for a state registered investment adviser firm must register in any state where the IAR maintains a place of business or has a retail customer residing in that state.
when do federal covered advisers’ employees considered IARs?
Federal covered advisers’ employees are IARs if they have a place of business in the state and otherwise fit the definition. IARs for federal covered advisers only need to register in states where they have a place of business.
However, if an IAR meets with customers in another state regularly, they would need to register in that state.
