Financial Advisor vs. Investment Advisor Representative
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I have a Series 7 and a Series 66 license along with Life/Health. I used to work for a wirehouse and had the title of Financial Advisor (FA) or Registered Representative (RR).
I now work for another company (insurance based, non-wirehouse) and received my business cards with both the Financial Advisor and Investment Advisor Representative (IAR) titles on it. I'm wondering if I correctly understand the differences.
My understanding is than an FA or RR is typically associated with a broker-dealer and is allowed to receive commissions generated from security sales. An IAR is an investment professional that specializes in fee-based financial planning. Technically, if you have two titles, you can act in both capacities. Is this true?
Can someone better articulate the differences or tell me if I am correct in my understanding? Thanks.
RickRoss,
I am looking to make the opposite move as you made. I am going to send you a message to see if I could get your take of what its like on the other side of the fence and why you made the switch. It looks to me like there are pros and cons of each side.
Thanks
Both investment advisors and financial advisors are alike in that they help you with managing your assets, but the services they provide also differ in some notable ways. An investment advisor assists you with handling your investments and securities so that you’ll have a strong investment portfolio. These advisors first assess your financial situation and also determine your investment risk tolerance.
The term financial advisor is a generic job title that does not formally describe what you can or cannot do for clients. People who have the title, financial advisor, usually have passed the 7 and 66 or the 7 and the 65/63. The term investment adviser representative is specific to people who have passed the series 65 or 66 exams. Investment advisers (the company) get paid fees for providing investment advice.