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Word or Phrase Abbreviation Definition
A  
Advisor    
Aggregator    
Assets Under Advisement AUA The dollar amount of assets a registered representative is paid by commission.
Assets Under Management AUM The dollar amount of assets an advisor charges a fee on.
     
B  
Banking Channel    
Breakaway broker   An advisor or registered representative who leaves one channel and moves to another. The most common is an advisor leaving a wirehouse to join an independent bd or RIA
Broker Dealer   A firm where the firm and people are in the business of buying and selling securities.
     
C  
Certified Financial Planner CFP  
Charter Financial Analyst CFA  
  ChFC  
  CLU  
Contingency Plan   A documented plan which outlines the ongoing business functions in the event of the death or protracted absence of a key person
Corporate RIA   An RIA that is part of a group of companies owned by a single entity. Often the corporate entity will include a broker dealer and an RIA.
Custodian   An institution responsible for safeguarding certificates and performing clerical duties
     
D  
Discretionary Authority   The authority given to someone other than an account's benefical owner to make investment decisions for the account concerning the security, the number of shares and whether to buy,sell or hold the position.
     
E  
Early Ensemble Firm   # of advisors = 2+; AUM < $200,000,000
Early Solo Practitioner   # of advisors = 1; years as an advisor between 5 and 10 years
Ensemble Practice   A advisory team where the number of advisors is 2 or more and the group operate as a unit
Enterprise Practice   The firm's identity is linked to the firm as a whole.
     
F  
Family Office    
Fee based advisor   An advisor who is compensated primarily through fees but does have some commissionable business.
Fee only advisor   An advisor who is compensated completely through fees and receives no commissionable income.
Fiduciary Standard    
Finanical Planning Association FPA  
  FINRA A self regulating organization (SRO) to govern the activities of broker-dealers
     
     
     
G  
     
     
H  
High Net Worth Individuals   Less clear than an accredited investor definition
Hybrid Rep   An advisor who typically began her practice being compensated primarily by commissions and is moving her compensation to primarily fee based or entirely fee only.
     
I  
  IAA  
  ICPA  
Independent Broker Dealer   A broker dealer whose advisors are independent contractors instead of employees.
Independent Channel    
Independent Contractor IBD  
Independent RIA   An RIA that stands alone, not part of a group entity or directly affiliated with a broker dealer.
Indication of Interest IOI Similar to a wink or a poke on social media sites; a one-time limited communication among  users of RIA Match expressing a conditional interest in.
Insurance Channel    
Investment Avisor Representative IAR A natural person who has passed the Series 65 or 66 Security exams employed by or associated with an investment advisor firm that makes investment.
     
J  
J    
     
K  
K    
     
L  
Life Style Practice   The firm's identity is linked completely to the individual contributions of its partners.
     
M  
Market Dominator   # of advisors = 2+; AUM > $500 million
Mature Ensemble Firm   # of advisors = 2+; $200,000,000 < AUM < $500,000,000
Mature Solo Practitioner   # of advisors = 1; years as an advisor > or = 10
Merger   The joining of two or more companies sharing revenue, expenses, clients and risk.
     
N  
  NAPFA  
     
Non-High Net Worth Individuals    
     
O  
     
P  
     
Q  
     
R  
Registered Investment Advisor   A legal entity (partnership, corporation, sole proprietorship, etc, ), a firm that has filed a Form ADV with either the SEC or the state securities Administrator.
Registered Representative   An associated person engaged in the investment banking or securities business  who is subject to registration with FINRA and securities exam licensing.
Roll Up    
     
S  
Securities and Exchange Commision SEC The General Principal Licensen entitles the holder to supervise the business of a broker/dealer. A Series 7 or 62 is a prerequisite.
Securities License  Series 6 Series 6 The investment company/variable contract products limited representative license, which entities the holder to sell mutual funds and variable annuities and is used by firms.
Securities License  Series 7 Series 7 The general securities registered representative license, which entitles the holder to sell all types of securities products with the exception of commodities.
Securities License  Series 22 Series 22 The holder of the DPP securities license is entitled to sell direct participation programs (DPPs) also known as limited partnerships.
Securities License  Series 24 Series 24 SThe General Principal Licensen entitles the holder to supervise the business of a broker/dealer. A Series 7 or 62 is a prerequisite.
Securities License  Series 63 Series 63 The uniform securities agent state law exam, which entitles the holder to sell seucrities and give investment advice in those states that require a Series 63 registration.
Securities License  Series 65 Series 65 The uniform investment advisor law exam, which entitles the holder to sell securities and give investment advice as an investment advisor representative in those states that require a Series 65 registration.
Securities License  Series 66 Series 66 The uniform combined state law exam designed to qualify candidates as both securities agents and investment advisor representatives.
     
T  
Tuck In   An advisor who leaves existing practice, typically from the wirehouse channel and joins another existing advisory practice.
     
U  
     
V  
     
W  
Wirehouse    
Wirehouse Channel    
     
X  
     
Y  
     
Z