What is a Registered Representative in the context of a Registered Investment Advisor (“RIA”)?

Definition: The formal regulatory name of a financial advisor operating in the capacity of a representative of a broker/dealer. In layman’s terms, when you work with a financial advisor who is compensated for their services on a transactional commission basis, you are generally working with a Registered Representative. This is a separate and distinct different type of advisor/client relationship than working with a fee-based financial advisor on an IAR basis.

When used in an RIA context: “Instead of choosing to work with a financial advisor on a fee basis with an RIA, the investor decided to work with a Registered Representative on a commission basis.”

See also: broker/dealer, IAR