Many Different Hats

An independent financial advisor may wear many different work “hats” over the course of their career. Here are some examples.

Insurance AgentRegistered RepresentativeInvestment AdviserFinancial Planner
Corporate affiliationInsurance company or agencyBroker-dealerRegistered Investment Adviser (RIA)Registered Investment Adviser (RIA)
Products offeredProperty & casualty insurance, life insurance, annuitiesSecurities (e.g., stocks, bonds, mutual
funds, ETFs), variable insurance (e.g., variable annuities and
variable life)		Investment adviceFinancial planning services
Compensation methodCommission from sale of products offeredCommission from sale of products offeredFee usually based on assets
under management (AUM)		Flat or hourly fee that may be waived if insurance, securities or other advisory services are sold
Professional designations & licensesChartered Life Underwriter
(CLU®), Chartered Financial Consultant
(ChFC®)		Series 6 (mutual funds and
variable annuities) license, Series 7 (all securities products) license, Series 63 (additional exam
required by each state to
transact business) license		Chartered Financial Analyst
(CFA®), Certified Financial Planner
(CFP®)		Certified Financial Planner
(CFP®)
LegislationState insurance lawsSecurities and Exchange Act
of 1934		Investment Advisers Act of 1940Investment Advisers Act of 1940 as described in
SEC Release IA-1092
RegulationsState insurance commissionersSecurities and Exchange Commission, FINRA, statesSecurities and Exchange Commission if assets under management exceed $100 million, states if assets under management are less than
$100 million		Securities and Exchange Commission if assets under management exceed $100 million, states if assets under management are less than
$100 million