Study guide

14.1 IAR Definition & Requirements

Series 65 Uniform Investment Adviser Law

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1 Introduction

About the Series 65 How to Use This Guide

2 Chapter 1: Economic Factors & Business Cycles

1.1 Business Cycles 1.2 Monetary Policy 1.3 Fiscal Policy 1.4 Inflation & Deflation 1.5 Interest Rates & Yield Curves 1.6 Global Economic Factors

3 Chapter 2: Financial Reporting & Analytical Methods

2.1 Financial Statements Overview 2.2 Accounting Fundamentals 2.3 SEC Filings & Annual Reports 2.4 Financial Ratios 2.5 Time Value of Money 2.6 IRR and NPV 2.7 Descriptive Statistics

4 Chapter 3: Types of Risk

3.1 Systematic (Market) Risk 3.2 Unsystematic (Company-Specific) Risk 3.3 Interest Rate & Reinvestment Risk 3.4 Inflation & Currency Risk 3.5 Liquidity Risk & Opportunity Cost 3.6 Risk Measurement & Portfolio Theory

5 Chapter 4: Cash Equivalents & Fixed Income Securities

4.1 Cash & Cash Equivalents 4.2 Treasury Securities 4.3 Agency Securities 4.4 Corporate Bonds 4.5 Municipal Bonds 4.6 Bond Pricing & Yields

6 Chapter 5: Equity Securities

5.1 Common Stock 5.2 Preferred Stock 5.3 Shareholder Rights & Corporate Actions 5.4 Equity Valuation Methods 5.5 ADRs, REITs & Other Equity Securities

7 Chapter 6: Pooled Investments

6.1 Mutual Funds 6.2 Mutual Fund Costs & Fees 6.3 Exchange-Traded Funds (ETFs) 6.4 Closed-End Funds & UITs 6.5 Hedge Funds & Private Equity

8 Chapter 7: Derivatives, Alternative Investments & Insurance Products

7.1 Options Basics 7.2 Options Strategies 7.3 Alternative Investments 7.4 Annuities 7.5 Life Insurance Products

9 Chapter 8: Client Types & Profiles

8.1 Individual Clients 8.2 Business Entity Clients 8.3 Trusts & Estates 8.4 Accredited & Qualified Investors 8.5 Suitability & Know Your Customer

10 Chapter 9: Portfolio Theory & Capital Markets

9.1 Modern Portfolio Theory 9.2 Capital Asset Pricing Model (CAPM) 9.3 Efficient Market Hypothesis 9.4 Risk & Performance Measures 9.5 Asset Allocation

11 Chapter 10: Portfolio Management Strategies

10.1 Investment Styles 10.2 Portfolio Management Techniques 10.3 Fixed Income Strategies 10.4 Return Calculations

12 Chapter 11: Tax Considerations & Retirement Planning

11.1 Capital Gains & Investment Taxes 11.2 Retirement Plans Overview 11.3 Individual Retirement Accounts (IRAs) 11.4 Education Savings Plans 11.5 Distributions & RMDs

13 Chapter 12: ERISA, Special Accounts & Performance Measures

12.1 ERISA Requirements 12.2 Special Account Types 12.3 Performance Measures & Reporting 12.4 QDROs & Special Situations

14 Chapter 13: Regulation of Investment Advisers

13.1 Investment Advisers Act of 1940 13.2 Registration Requirements 13.3 Recordkeeping Requirements 13.4 Custody Requirements 13.5 Exempt Reporting Advisers

15 Chapter 14: Regulation of Investment Adviser Representatives

14.1 IAR Definition & Requirements 14.2 Registration & Post-Registration 14.3 IARs of Federal Covered Advisers

16 Chapter 15: Regulation of Broker-Dealers & Agents

15.1 Broker-Dealer Definition 15.2 Agent Registration 15.3 Regulation Best Interest

17 Chapter 16: Securities Registration & Exemptions

16.1 Uniform Securities Act 16.2 Securities Registration Methods 16.3 Exempt Securities 16.4 Exempt Transactions

18 Chapter 17: Communications & Client Relationships

17.1 Advertising Rules 17.2 Social Media & Electronic Communications 17.3 Client Agreements & Disclosure 17.4 Proxy Voting & Other Obligations

19 Chapter 18: Ethics & Fiduciary Obligations

18.1 Fiduciary Duties 18.2 Prohibited Practices 18.3 Senior & Vulnerable Adult Protection 18.4 AML & Compliance Programs

14.1 IAR Definition & Requirements

Key Takeaways Explain This Topic AI

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.

Last updated: October 2026

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

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