14.1 IAR Definition & Requirements
Key Takeaways
IARs provide advice, manage accounts, solicit business, or supervise those activities.
Clerical or administrative staff without advisory duties are not IARs.
Series 65 requires 92 of 130 scored questions correct and no sponsor.
Series 66 plus Series 7 is an alternative path.
CFP, ChFC, MSFS, CFA, PFS and CIMA holders may have the exam waived in most states.
Investment Adviser Representative Definition & Requirements
An Investment Adviser Representative (IAR) is an individual who provides investment advice on behalf of an investment adviser firm. Understanding who qualifies as an IAR and the qualification requirements is essential for the Series 65 exam.
Definition of Investment Adviser Representative
Under the Uniform Securities Act and NASAA model rules, an IAR is any individual who:
| Activity | Description |
|---|---|
| Provides Advice | Makes recommendations or renders investment advice regarding securities |
| Manages Accounts | Manages client accounts or portfolios on a discretionary or non-discretionary basis |
| Determines Recommendations | Determines which recommendations or advice should be given |
| Solicits Business | Solicits, offers, or negotiates for the sale of investment advisory services |
| Supervises | Supervises employees who perform any of the above functions |
IAR Exclusions
Certain individuals are NOT considered IARs:
| Exclusion | Details |
|---|---|
| Clerical/Administrative | Staff performing purely ministerial functions |
| No Client Contact | Individuals who do not regularly solicit or meet clients |
| Back-Office | Operations, compliance (non-advisory), and support staff |
| Supervised Persons | Some jurisdictions exclude those who don't make recommendations |
On the Exam: The key distinction is whether the individual provides investment advice or has client-facing advisory responsibilities. Administrative assistants who schedule meetings but don't give advice are not IARs.
Qualification Examinations
Series 65 Exam
The Uniform Investment Adviser Law Examination is the primary qualification exam:
| Requirement | Details |
|---|---|
| Questions | 130 scored questions + 10 unscored pretest questions |
| Time | 180 minutes (3 hours) |
| Passing Score | 92 of 130 scored questions (NASAA: not a percentage) |
| Sponsor Required | No—can self-enroll without firm sponsorship |
| Cost | $187 (as of 2026) |
Series 66 + Series 7 Alternative
| Requirement | Details |
|---|---|
| Series 66 | Uniform Combined State Law Examination (110 questions, 100 scored, 150 minutes) |
| Series 7 | General Securities Representative (requires sponsor) |
| Combined | Series 66 covers both Series 63 and Series 65 content |
| Passing Score | Series 66: 73 of 100 scored questions; Series 7: 72 (a scaled score) |
Exam Content (Series 65)
| Content Area | Weight |
|---|---|
| Economic Factors & Business Information | 15% |
| Investment Vehicle Characteristics | 25% |
| Client Investment Recommendations & Strategies | 30% |
| Laws, Regulations & Guidelines | 30% |
Professional Designation Waivers
Some states allow qualifying professional designations to waive the Series 65 exam:
| Designation | Granting Organization |
|---|---|
| CFP | Certified Financial Planner Board of Standards |
| CFA | CFA Institute |
| ChFC or MSFS | The American College of Financial Services |
| PFS | American Institute of Certified Public Accountants |
| CIMA | Investments & Wealth Institute |
Waiver Requirements
| Requirement | Details |
|---|---|
| Current & Good Standing | Designation must be active |
| State Approval | Not all states accept all designations |
| Other Requirements | Background check, fees still required |
| CE Still Required | Waiver does not exempt from continuing education |
On the Exam: The exam waiver only waives the Series 65. If Series 66 is required, holding a designation does NOT waive Series 63 content—Series 7 + professional designation would still require additional registration.
Exam Validity and Re-Registration
| Situation | Rule |
|---|---|
| Exam Valid | 2 years from termination date |
| Within 2 Years | Can re-register without re-taking exam |
| After 2 Years | Must re-take qualifying exam |
| Multiple States | Same exam valid for multiple state registrations |
Key Takeaways
- IARs provide advice, manage accounts, solicit business, or supervise those who do
- Clerical and administrative staff without advisory duties are not IARs
- Series 65 requires 92 of 130 scored questions correct, no sponsor needed
- Alternative: Series 66 + Series 7 (Series 7 requires sponsor)
- CFP, ChFC, MSFS, CFA, PFS and CIMA may waive the exam requirement in most states
Under the Uniform Securities Act, an Investment Adviser Representative is defined as an individual who:
Only owns shares in an investment advisory firm
Provides investment advice, manages accounts, or solicits advisory business
Only performs clerical functions for an adviser
Is registered with the SEC as a broker-dealer
The Series 65 exam consists of how many scored questions with what passing score?
100 scored questions, 73 correct to pass
130 scored questions, 92 correct to pass
150 scored questions, 105 correct to pass
125 scored questions, 90 correct to pass
Which professional designation may waive the Series 65 exam requirement?
CPA (Certified Public Accountant)
MBA (Master of Business Administration)
CFP (Certified Financial Planner)
Series 7 license alone
Sections you finish are checked off in the contents.