Introduction

Welcome to Investment Adviser Representative Regulation, the unit that explains who qualifies as an investment adviser representative (IAR) under state law, how IARs register, what exams they must pass, and how their registration can be denied, revoked, or withdrawn.

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, the Investment Adviser Registration Depository (IARD) system, consent to service of process, and the effective date of registration
• Examination Requirements: Series 65 and Series 66 pathways, professional designation waivers, and the 2-year exam validity rule
• Post-Registration Obligations: Updating Form U4, recordkeeping, and ongoing disclosure duties
• Status Changes and Termination: Notification requirements and Form U5 filing
• Denial, Revocation, Suspension, and Withdrawal: Grounds for administrative action, due process protections, and the difference between cancellation and revocation
• 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.