Social media may give users the impression that anyone can be a fiscal expert. Robo platforms may try to convince them an advisor isn't necessary. Costless trading apps open up the market to not-financial newbies. Is financial counselor licensing still necessary? Yes.

Licensed financial advisors tin can compete with robo advisors and free trading platforms. FAs are a college-level option, where real humans are providing fiduciary level advice. Licensing is required for that. Here's what you need to know nearly financial advisor license requirements.

Step #1: First with the SIE Exam

The Securities Industry Essentials (SIE) Exam is a co-requisite to the Series 7 exam, but you don't need a sponsor to take it. This is adequately new. In 2015, to eliminate redundancies, FINRA consolidated fundamental knowledge from existing "Series" exams into the SIE exam.

The SIE was created for individuals who want to enter the field of fiscal services prior to finding a sponsor. It includes elements of the Series 6, Series seven, and Series 57 (Securities Trader), among others. Pass it and you can accept "peak-off" tests in each of those categories.

Note, however, that you lot must be sponsored by a FINRA member firm or cocky-regulatory organisation (SRO) to take the meridian-off tests or sit for a Series 6 or Series vii. Passing the SIE Exam and adding information technology to your educational credentials will give you a much better shot at obtaining that sponsorship.

Step #2: Find a Sponsor for Your Series 6 or Series vii

The Series 6 and Series 7 license are some of the well-nigh important licenses for financial advisors. Here'due south what you need to know:

  • The Serial six license is valuable, but information technology will restrict you in terms of what y'all can offer to your clients. The Series 6 is for advisors who want to sell but packaged securities, like mutual funds and variable annuities. That's a good commencement, but you may desire to exercise more.
  • The Serial 7 license gives yous the ability to sell packaged securities, private stocks, bonds, options, and futures. This is the gold standard of licensing for a financial advisor. Even if you start out with a Series vi, you may want to come back and do the Serial seven later on.

After you've been licensed for two years, you'll need to complete continuing pedagogy (CE) courses to hold on to your Series 7 license. Yous have 120 days to consummate those in the first cycle (afterwards year two)—then they'll be required again every three years.

Stride #3: Consider the Serial 3

In example y'all're wondering, selling real estate or life insurance requires dissimilar licenses. Commodities are likewise a separate category. Yous need a Series three to sell those. For more data, financial advisor licensing options and qualification exams are listed on the FINRA website.

Step #4: The Series 63, Series 65, or Serial 66

Each of these examinations is administered by FINRA and created by the North American Securities Administrators Clan (NASAA). They are similar, but at that place are some key differences. Your financial advisor license requirements in this expanse will be dependent on what type of work you want to do:

  • The Serial 63 is required in virtually states if you want to be a registered representative. The exceptions are Colorado, District of Columbia, Florida, Louisiana, Maryland, New Jersey, Ohio, and Puerto Rico. The examination is composed of sixty multiple selection questions.
  • The Series 65 was expanded in 2000 from 75 questions to a 130-question competency exam. It focuses on state securities laws and ideals. Yous demand to go 94 correct answers to laissez passer. This license is required for fee-based advisers.
  • The Series 66 is a recent addition created by the NASAA to eliminate redundancies betwixt the Series 7 and the Series 63 or 65. You must pass the Serial 7 to be eligible. The combination of the two are sufficient for licensing in all states.

License Requirements Summarized

To summarize all of this, you're required to pass the SIE to get started. The minimum licensing needed subsequently that is a Series 6 and 63. That qualifies you to exist an agent with the right to sell commissionable bundle securities, namely mutual funds and variable annuities.

If you want to go an investment advisor representative (IAR), the ideal scenario is to laissez passer the SIE, Series 7, and Series 66. You'll demand a sponsor to reach all of that and it will take a few years. When completed, yous'll be able to offer a full range of financial services.

Further Your Education: CFP and CPA Certifications

Once you lot're fully licensed, you may desire to get a registered investment advisor (RIA). Competition is fierce, so y'all'll need something to distinguish your do from other advisors in the infinite. Ii key areas yous can do that are financial planning and bookkeeping:

  • To become a Certified Financial Planner (CFP), y'all must agree a bachelor's degree and complete specific CFP-certified courses. The latter portion can be waived if you concord a CFA, CPA, or master's degree. You also need to sit for the test and piece of work 3 years in the industry.
  • Certified Public Accountants (CPA) do more than just set up tax returns. Accounting services will augment your entreatment to pocket-sized business owners and loftier internet worth clients. A bachelor's caste with a focus in accounting is required, forth with ii years relevant experience.

Become an Independent Fiscal Advisor

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