Definition
a broadening interpretation of investment adviser to include financial planners, pension consultants, and others who offer investment advice as part of their financial practices.
Financial Planners
- FPs who make recommendations regarding a personâs financial resources or perform analyses that concern securities are investment advisers if they do so as part of a business or for compensation
Under this interpretation, the SEC holds that there is no such thing as a comprehensive financial plan that does not involve securities
Pension Consultants
- Consultants who advise employee benefit plans on how to fund their plans with securities are also considered IAs
Sports and Entertainment Representatives
- A person who provides financially related services to entertainers/athletes including advice on investing, tax planning, budgeting, and money management, etc. are considered IAs
- NOTE: A sports agent who helps a player get a favorable contract and receives a commission for doing so isnât necessarily an investment adviser. If that person then turns around and tells the player what to do with their money â e.g. to take their earnings and invest it â then they would be in the business of acting like an IA.