What is an investment adviser representative?
A. Most states follow a definition of investment adviser representative similar to that in the Uniform Securities Act. An investment adviser representative generally is a person who, for compensation (1) makes any recommendations or otherwise renders advice regarding securities; (2) manages accounts or portfolios of clients; (3) determines which recommendation or advice regarding securities should be given; (4) solicits, offers, or negotiates for the sale of or sells investment advisory services, or (5) supervises employees who perform any of the foregoing. Only states register investment adviser representatives, not the SEC, but those who must be registered include individuals working for both state and SEC-registered firms.
An investment adviser representative (“IAR”), sometimes referred to as a registered adviser (“RA”), or associated person is defined in Code Section 25009.5(a) as any partner, officer, director of (or a person occupying a similar status or performing similar functions) or other individual, except clerical or ministerial personnel, who is employed by or associated with, or subject to the supervision and control of, an investment adviser that has obtained a certificate or that is required to obtain a certificate under this law, and who (1) makes any recommendations or otherwise renders advice regarding securities, (2) manages accounts or portfolios of clients, (3) determines which recommendations or advice regarding securities should be given, (4) solicits, offers, or negotiates for the sale or sells investment advisory services, or (5) supervises employees who perform any of the foregoing. Important: Each officer, director or partner exercising executive responsibility (or persons occupy
