Investment Adviser Representative Regulation: Rapid Fire

What this video covers

• Why an investment adviser representative (IAR) is always an individual person and never a firm, and how that differs from investment adviser (IA) registration
• The five specific activities (recommendations, account management, determining advice, solicitation, supervision) that trigger IAR status versus purely clerical roles that do not
• Registration directionality: why the firm registers up with the Securities and Exchange Commission (SEC) if federal covered, while the IAR always registers down at the state level
• How filing Form U4 through the electronic Investment Adviser Registration Depository (IARD) / Web Central Registration Depository (CRD) system automatically constitutes consent to service of process, with no separate document required
• The de minimis exemption: no more than 5 non-institutional clients in a state where the IAR has no place of business over a 12-month period
• The five professional designation waivers (Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Personal Financial Specialist (PFS), Certified Investment Management Analyst (CIMA)) that excuse the exam but not the registration paperwork
• Continuing education requirements in adopting states: 12 annual credits (6 Products and Practices, 6 Ethics and Professional Responsibility, with at least 3 ethics credits), no carryforward, and the CE Inactive status consequences
• State administrator powers: deny, revoke, suspend, and cease-and-desist orders without a hearing, plus the 30-day standard for promptly updating Form U4 material changes and the December 31 universal renewal deadline