Investment Adviser Representative (IAR)

B is correct. Investment Adviser Representatives (IARs) ALWAYS register with state securities regulators where they conduct business, never with the SEC. This is true regardless of whether their firm is SEC-registered or state-registered.

A is incorrect because the firm's SEC registration status does not change where IARs register. only the firm (IA) registers with the SEC. C is incorrect because IARs never have dual registration with both SEC and states; only states regulate IARs. D is incorrect because IARs must register even when working for SEC-registered firms; the individual and the firm have separate registration requirements.

C is correct. The Series 65 exam alone qualifies an individual for IAR registration. Alternatively, passing both the Series 7 (General Securities Representative) and Series 66 (Uniform Combined State Law) also qualifies for IAR registration.

A (Series 6 only) qualifies individuals to sell mutual funds and variable products but does NOT qualify for IAR registration. B (Series 7 only) qualifies for broker-dealer representative roles but requires the Series 66 to also serve as an IAR. D (Series 63 + Series 6) provides state law knowledge and mutual fund sales qualification but does not meet IAR requirements.

B is correct. Two individuals require IAR registration: Mark (who makes investment recommendations) and David (who supervises IARs and provides advice to clients). IAR registration is required for individuals who provide investment advice, make recommendations, or supervise those who do.

A is incorrect because it excludes David, who supervises IARs and meets with institutional clients. both activities requiring IAR registration. C is incorrect because Susan performs purely clerical duties (answering phones, scheduling), which do not require IAR registration. D is incorrect because Lisa's role is purely administrative (paperwork, file maintenance) and does not involve providing investment advice or supervision.

B is correct (the EXCEPT answer). IARs do NOT register with the SEC regardless of their firm's assets under management. IARs always register with state securities regulators, even if the investment adviser firm itself is SEC-registered.

A is accurate: IARs owe fiduciary duty to clients, requiring them to act in the client's best interest at all times. C is accurate: IARs are defined as individuals who provide investment advice or manage accounts on behalf of an RIA. D is accurate: as fiduciaries, IARs must fully disclose all material conflicts of interest, including compensation arrangements that could influence their recommendations.

B is correct. Statements 1, 2, and 4 are accurate.

Statement 1 is TRUE: As an individual providing investment advice on behalf of an investment adviser, Michael must register as an IAR with the state securities regulator where he conducts business.

Statement 2 is TRUE: IARs owe fiduciary duty to clients under the Investment Advisers Act of 1940, requiring them to act in the client's best interest and disclose all material conflicts.

Statement 3 is FALSE: IARs never register with the SEC, regardless of the firm's size or registration status. Only the investment adviser firm (not individual IARs) may register with the SEC.

Statement 4 is TRUE: A key distinction between IARs and broker-dealer representatives is that IARs are held to a fiduciary standard at all times, while broker-dealer representatives traditionally operate under a suitability standard (though Regulation Best Interest has narrowed this gap).