Investment Advisor Representative (IAR) Account Types

Investment Advisor Representatives (IARs) can operate under various account types, depending on the specific services they provide and the regulatory requirements they must adhere to. The primary types of accounts include:

• Individual Accounts: These accounts are held by individual IARs who provide investment advice directly to clients. They require the IAR to be registered with the appropriate regulatory bodies and complete necessary exams, such as the Series 65 or Series 66.

• Joint Accounts: IARs may also manage joint accounts for multiple clients or partners. These accounts require similar registration and compliance with regulations as individual accounts.

• Business Accounts: IARs representing firms can open business accounts under their Registered Investment Advisor (RIA) entity. These accounts allow the firm to manage investments on behalf of clients and must be registered with the SEC or state regulators.

• Retirement Accounts: IARs can assist clients in setting up various retirement accounts, such as IRAs or 401(k)s. These accounts have specific tax advantages and regulatory compliance requirements.

Investment Advisor Representative (IAR) Broker Account Opening Process

To open a broker account as an IAR, the following steps are generally required:

• Create an Account with the Investment Adviser Registration Depository (IARD): This is the first step in the registration process. The IAR must create an account that is managed by the Financial Industry Regulatory Authority (FINRA).

• Obtain a Central Registration Depository (CRD) Number: Once the account is established, FINRA provides a CRD number necessary for filing the required forms.

• File Form ADV and Form U4: The IAR must submit these forms to the SEC or the appropriate state regulatory authorities, detailing the services provided and the structure of the advisory firm.

• Pass Required Exams: IARs typically need to pass the Series 63 and/or Series 65 exams to ensure they are qualified to provide investment advice.

• Complete State Registration: IARs must register with the state(s) in which they provide investment advice. This often involves filing the U4 form through the CRD system.

• Continuing Education Requirements: Depending on the jurisdiction, IARs may need to fulfill ongoing education requirements to maintain their registration.

By following these steps, IARs can successfully open and maintain their broker accounts, ensuring compliance with all regulatory requirements.