investment adviser

USA

Any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities (Section 202(a)(11), Investment Advisers Act of 1940). The Advisers Act requires most large investment advisers to register with the SEC and most smaller investment advisers are required to register in individual US states.

Investment advisers may have many different business models including acting as what is commonly know as a "financial planner" but also may include certain service providers to pension plans and mutual fund companies and advisers to hedge funds. In addition to regulation under the Advisers Act and state law, some investment advisers may be subject to regulation under the Investment Company Act of 1940, the Employee Retirement Income Security Act of 1974 (ERISA), and the Commodity Exchange Act.

Related terms

broker-dealer

Employee Retirement Income Security Act of 1974 (ERISA)

hedge fund

Investment Advisers Act of 1940 (Advisers Act)

Investment Company Act of 1940, as amended (ICA)

pension plan

Securities and Exchange Commission (SEC)