An Investment Advisor Representative, depending on the state, is a person who 1) makes any recommendations regarding securities, (2) manages accounts of clients, (3) determines which recommendation or advice regarding securities should be provided, (4) solicits or sell investment advisory services, or (5) supervises employees who perform any of the above items.
Just like a Registered Investment Adviser (RIA), an Investment Advisor Representative (IAR) must be registered with the state securities division and perhaps the Securities and Exchange Commission (SEC) as well. In addition to these requirements, an IAR will also need additional licenses in order to provide certain types of financial and investment advice, as well as certain licenses to buy and sell securities.
Just like an RIA, an IAR has a host of compliance related issues and can be investigated and sanctioned by the SEC and FINRA for violations of duties that the IAR has to his or her clients.
For more information:
If you are an IAR and you are subject to an investigation by FINRA or the SEC. It is important to speak with an attorney before responding to any request for information from any regulatory authority, especially FINRA, state securities division, or the SEC. If you are subject to an investigation or have questions regarding this process, please contact our office at (513) 241-0400 or visit our website. We look forward to hearing from you.