Investment Advisory Representative (IAR)
Candlefocus EditorIARs typically charge a fee for their services, whether that fee is taken on commission basis, at a flat or hourly rate, or as a percentage of the assets under management (AUM). Thus, the more successful an IAR is in encouraging clients to increase their investment portfolio or to make suggested investments, the more money the IAR stands to make from their fees.
Before an individual can become an IAR, they must complete a series of credentialing exams such as the FINRA-certified Series 63 and Series 65 exams. Depending on the state, there may be additional qualifications required, such as additional examination coursework and even an annual renewal fee.
Once an individual becomes an IAR, they have a variety of professional duties they must fulfill. This may include making financial recommendations, managing client accounts, conducting research and analysis of markets and investments, providing advisory services to external parties, or overseeing other IARs’ performance. It’s important to note that an individual’s role as an IAR is different than an investment advisor, which involves more hands-on management of a client’s financial portfolio.
In short, Investment Advisory Representatives are critical components of the financial advisory industry. They play a vital role in delivering financial advice and helping clients manage their investments. To become an IAR, individuals must first obtain the necessary qualifications and must fulfill their responsibilities to their clients in order to remain in good standing.