Welcome to Investment Adviser Representative Regulation, the unit that explains who qualifies as an investment adviser representative (IAR) under state law, how IARs register, and what exams they must pass.
Exam Weight: 5% (approximately 3 questions)
What You'll Learn
In this unit, you'll cover:
- Definition of an IAR: The five functions that trigger IAR status and who is excluded
- IAR Registration Requirements: State registration obligations for IARs of state-registered investment advisers (IAs) versus federal covered advisers, plus the de minimis exemption
- IAR Registration Procedure: Form U4, consent to service of process, and the effective date of registration
- Examination Requirements: Series 65 and Series 66 + Series 7 pathways, and professional designation waivers
- IAR vs. Agent Registration: Side-by-side comparison of key differences and similarities
Why This Matters
IAR regulation builds directly on the investment adviser concepts from the previous unit. While that unit focused on the IA firm itself, this unit zeroes in on the individuals who actually deliver advisory services. The exam tests your ability to:
- Identify who qualifies as an IAR
- Understand the "place of business" rule for federal covered adviser IARs
- Recognize the examination and registration requirements that apply to advisory personnel
Many of these rules parallel the agent registration requirements you studied earlier, so this unit also tests whether you can distinguish IAR rules from agent rules.
Let's start with the definition of an investment adviser representative and the five functions that trigger IAR status.