What is the difference between a registered representative and an investment adviser?

In Virginia, there are two primary roles in the investment industry: a registered representative and an investment adviser. A registered representative is an individual who works with clients to buy and sell securities through a broker-dealer. They must have a valid license and be registered with the Virginia State Corporation Commission (SCC). They are held to a certain standard of conduct and must follow the rules of the securities industry. On the other hand, an investment adviser is a professional who provides advice and strategies on investments. Investment advisers must be registered with the SCC, but are held to a higher fiduciary standard than registered representatives. This means they are obligated to act in their clients’ best interests and must provide advice that is in the best interests of their client, regardless of their own personal gain. In addition, registered representatives are typically compensated with commissions from the sale of securities, while investment advisers are usually compensated with either a flat fee or a percentage of total assets under management. It is important to note that registered investment advisers may not provide investment advice without a valid license, while registered representatives may not provide investment advice without being associated with a broker-dealer.

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What is the difference between a registered representative and an investment adviser?

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