IAR study guide
IAR · Work through your exam, one topic at a time.
The Investment Adviser Representative (IAR) credential is the registration that lets an individual give investment advice on behalf of a registered investment adviser in the United States. Candidates typically reach it through one of two FINRA-administered exams: the Series 65, taken by people who are not already securities-licensed, or the Series 66, which pairs a state-law component with the Series 7 general securities licence. Passing an exam is only one step; registration also requires a sponsoring advisory firm and a filing through the appropriate regulator, usually the SEC or a state securities authority. The content is broad rather than deeply quantitative. Topics on this exam: Economic and Business Information, Investment Vehicle Characteristics, Client Investment Recommendations and Strategies, and Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices. The IAR study guide has 4 sections and about 1,294 words.
01Economic and Business Information
This domain tests how macroeconomic conditions and business-cycle analysis inform security valuation and client advice. Expect questions on GDP, inflation, employment, central-bank policy, and interest-rate mechanics rather than on forecasting alone.
330 words, about 2 min02Investment Vehicle Characteristics
This domain tests the features, risks, valuation, and tax treatment of equities, fixed income, derivatives, pooled vehicles, and alternatives. Questions often compare two vehicles on a specific risk or cost dimension.
343 words, about 2 min03Client Investment Recommendations and Strategies
This domain tests the process of turning client facts into a suitable portfolio: risk tolerance, time horizon, liquidity, taxes, and constraints, plus portfolio construction and monitoring. Investment policy statement: Documents objectives, risk tolerance, return requirement, time horizon, liquidity needs, tax situation, legal constraints, and unique circumstances.
297 words, about 1 min04Laws, Regulations, and Guidelines, Including Prohibition on Unethical Business Practices
This domain tests the Investment Advisers Act of 1940, state adviser rules, fiduciary duty, disclosure, custody, advertising, recordkeeping, and ethical conduct. The representative must know what triggers registration and what conduct is prohibited.
324 words, about 2 min