NAICS UNIVERSITY · Free research for insurance agents
Portfolio Management and Investment Advice
NAICS 523940 · United States · 2022 edition
This industry comprises establishments primarily engaged in managing the portfolio assets (i.e., funds) of others on a fee or commission basis and/or providing customized investment advice to clients on a fee basis. Establishments providing portfolio management have the authority to make investment decisions, and they derive fees based on the size and/or overall performance of the portfolio. Establishments providing investment advice provide financial planning advice and investment counseling to meet the goals and needs of specific clients, but do not have the authority to execute trades.
Start with the work promised to the client.
For Portfolio Management and Investment Advice, clarify the services, contracts and consequences of an error. Review professional liability (e&o), cyber liability, fiduciary liability. Confirm which professional activities and additional services the proposed coverage actually addresses.
Questions to ask
- Is the firm a registered investment adviser (RIA), and at what level — state or SEC-registered?
- What is the approximate total AUM under management or advice?
- Does the firm have discretionary authority to execute trades, or is the role advisory only?
- What types of clients are served — retail, high-net-worth, institutional, or a mix?
- Does the firm custody client assets directly, or are assets held at a third-party custodian?
- Any prior E&O claims, regulatory inquiries, or disciplinary actions in the past five years?
- What investment strategies or asset classes are primarily used — equities, alternatives, concentrated positions?
- For Portfolio Management and Investment Advice, what should the underwriter know about prior e&o claims, regulatory sanctions, or sec/finra disciplinary actions?
Activities described by this code
- Financial planning services, customized, fees paid by client
- Managing trusts
- Investment advisory services, customized, fees paid by client
- Portfolio fund managing
Other activities to examine
Census classification reference
For educational purposes only. AI-generated insurance research and automated logic can contain errors. Independently verify classification and coverage decisions.
Compare another operationInsurance operations research — draft
These establishments manage client investment portfolios on a discretionary or non-discretionary basis, or provide customized financial planning and investment advisory services for a fee. Day-to-day work involves client consultations, portfolio analysis, trade recommendations or execution, and regulatory compliance. Operations are primarily office-based with relatively low premises hazard.
Questions to investigate
- Is the firm a registered investment adviser (RIA), and at what level — state or SEC-registered?
- What is the approximate total AUM under management or advice?
- Does the firm have discretionary authority to execute trades, or is the role advisory only?
- What types of clients are served — retail, high-net-worth, institutional, or a mix?
This insurance research was generated in April 2026. It has not received a complete human review. The October 12, 2026 audit checked codes and titles only, not descriptions or coverage assertions.