What's What in the Financial Services Industry

Investment Adviser Representative

Definition: individual working for an investment adviser firm who gives investment advice, manages assets and/or sells securities

License: required to have either Series 7 and Series 66 or just Series 65

Regulated by: Regulation of investment advisers is split between the states and the federal government through the SEC. Who the investment adviser is regulated by depends on how much money the investment adviser manages. Beginning July 2011, investment advisers with over $100 million in assets under management are regulated by the SEC while all others are regulated by the states.

Standard of care: fiduciary duty

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Explanation of License Exams:

  • Series 7 - General securities representative exam
  • Series 63 - Uniform state law exam
  • Series 65 - Investment adviser exam
  • Series 66 - Uniform combined state law exam
  • Series 24 - General securities principal

Related Information: