What are the different types of investment advisors?

Investment advisors are professionals who manage investments for individuals and organizations. They provide advice and oversee investments. In California, the Department of Business Oversight (DBO) oversees investment advisors, and the DBO has different categories of investment advisors based on the types of services they provide. The first type of investment advisor is a Wealth Manager. This advisor is typically registered with the DBO, and offers comprehensive financial planning by providing tax advice, retirement planning, estate planning and other financial services to wealthy individuals and families. The second type is an Investment Adviser Representative (IAR). This person can help individuals and organizations to select investments and review their portfolios, but they must work under the supervision of a registered investment advisor. The third type is an Investment Adviser Agent (IAA). This type of advisor is typically employed by a large financial services company and provides advice to clients on a fee-only basis. This advisor is not registered with the DBO, but is licensed by the California Department of Insurance. The fourth type is a Private Banker. These types of advisors are typically employed by large banks and provide advice to wealthy clients on investments and financial services. Private bankers are not registered with the DBO, but are regulated by state and federal banking agencies. Finally, the fifth type is a Registered Investment Advisor (RIA). This type of advisor is registered with the DBO, and must have a fiduciary responsibility to their client, meaning that they must always act in the best interest of their client. An RIA may provide advice on investments, retirement and estate planning, as well as asset allocation.

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What are the different types of investment advisors?

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