Introduction

Welcome to Regulation of Investment Adviser Representatives: the unit that covers who qualifies as an investment adviser representative (IAR), how they register, and what obligations follow registration.

Exam Weight: Part of 45 questions (45% of exam)

What You'll Learn

In this unit, you'll cover:

• Definition of an IAR: Who qualifies as an investment adviser representative under state law and SEC rules (and who does not)
• Registration Requirements: Form U4 filing, qualifying exams, professional designation waivers, and the critical state-level registration rule for IARs of federal covered advisers
• Post-Registration Requirements: Ongoing obligations including updates, renewals, and compliance with state securities laws

Why This Matters

Investment adviser representatives are the individuals who actually interact with clients: giving advice, managing portfolios, and soliciting business. Understanding exactly who must register, where they must register, and what happens after registration is frequently tested on the Series 66. The distinction between adviser-level and representative-level regulation catches many exam takers off guard, especially when a federal covered adviser's IARs still must register at the state level.

Let's start with the definition of an investment adviser representative.