- 1,473
I have my 6&63 License now. I have left my old broker dealer and I have another year to place it with another firm. I hate to just drop it. I do not sell anything that needs this license now. Any Ideas??
6 and 63 License
- Thread starter Sales71
- Start date
- 15,041
Drop it.
It costs money in registration fees, E&O, compliance, etc. to keep it active. Also, no one wants a RR that isn't producing. In fact, B/Ds are not supposed to allow people to park their licenses. Unless otherwise required to be registered due to your job duties, they are not supposed to have non-producing RRs.
It costs money in registration fees, E&O, compliance, etc. to keep it active. Also, no one wants a RR that isn't producing. In fact, B/Ds are not supposed to allow people to park their licenses. Unless otherwise required to be registered due to your job duties, they are not supposed to have non-producing RRs.
- 11,274
If you have the qualifying securities production history, I'd check out ONESCO.
The only reason I could see having these licenses now... is to help qualify your advice in the event of a "source of funds" from transferring a portfolio of securities to an annuity.
Otherwise, why have the professional, voluntary handcuffs?
The only reason I could see having these licenses now... is to help qualify your advice in the event of a "source of funds" from transferring a portfolio of securities to an annuity.
Otherwise, why have the professional, voluntary handcuffs?
Great minds think a like! DROP IT!
- 15,041
To me, that is worse. You subject yourself to FINRA in the meantime. Also, I feel when all you do is move people from securities to insurance products while holding a security license you are just setting yourself up for further accusations when things go south.
- 4,132
I let mine go at year end of 2012. Do I miss it? Yea, a little bit.
Do I miss paying through the a ss for E&O because the BD decided they had their own E&O and had no problem charging me 4 times the money for less coverage than I had? NOPE.
Do I miss having to ask somebody else's permission for just about everything I do? NOPE
Do I miss the inspections that last 6 hours, wasting my time and their demanding that I submit all emails (especially non securities business) to them for approval? NOPE
Do I miss having to explain in writing to supposedly college educated people that if I give them medical emails, both they and I are violating HIPAA? NOPE.
Do I miss them taking a huge cut of my commissions for basically as little work as they can possibly do? NOPE.
When I sit back and look at it, the NOPE's outweigh the positives of having the licensing.
Do I miss paying through the a ss for E&O because the BD decided they had their own E&O and had no problem charging me 4 times the money for less coverage than I had? NOPE.
Do I miss having to ask somebody else's permission for just about everything I do? NOPE
Do I miss the inspections that last 6 hours, wasting my time and their demanding that I submit all emails (especially non securities business) to them for approval? NOPE
Do I miss having to explain in writing to supposedly college educated people that if I give them medical emails, both they and I are violating HIPAA? NOPE.
Do I miss them taking a huge cut of my commissions for basically as little work as they can possibly do? NOPE.
When I sit back and look at it, the NOPE's outweigh the positives of having the licensing.
Some agents feel more "professional" having it. Some agents are afraid they'll miss a variable annuity opportunity even though they haven't sold one in 3 years. Some are afraid of the "source of funds" issue.
There are legitimate ways of dealing with each of those possibilities. Unless you are going to do a moderate to substantial amount of securities business, it's not worth the hassle.
And you can forget "parking it". No BD wants that unless you're with a captive that requires it.
There are legitimate ways of dealing with each of those possibilities. Unless you are going to do a moderate to substantial amount of securities business, it's not worth the hassle.
And you can forget "parking it". No BD wants that unless you're with a captive that requires it.
- 15,041
Perhaps Larry as a former sales manager can either validate or invalidate this statement.
A 6 and 63 is nothing but an albatross around your neck. All it lets you do are variable products. And that isn't much any more as indexed products can get you most of the upside without most of the downside. Mutual funds are a money loser, you'll spend more on the paper for copying than you'll receive in commission. Let's be real, the person that will put $100k or more with just a 6/63 are few and far between.
Instead, the 6 and 63 gives management a way to control you. Due to compliance, a captive/career agency can basically observe everything you are doing and make sure you toe the company line. If they don't like it, they simply refuse to approve the OBA or use the power of FINRA to stop you.
Step up and get a 7 and/or 65 so that you can handle real securities in profitable amounts to justify all the headache you will have to endure.
A 6 and 63 is nothing but an albatross around your neck. All it lets you do are variable products. And that isn't much any more as indexed products can get you most of the upside without most of the downside. Mutual funds are a money loser, you'll spend more on the paper for copying than you'll receive in commission. Let's be real, the person that will put $100k or more with just a 6/63 are few and far between.
Instead, the 6 and 63 gives management a way to control you. Due to compliance, a captive/career agency can basically observe everything you are doing and make sure you toe the company line. If they don't like it, they simply refuse to approve the OBA or use the power of FINRA to stop you.
Step up and get a 7 and/or 65 so that you can handle real securities in profitable amounts to justify all the headache you will have to endure.
I agree 200% concerning mutual funds. I could never justify growing money in a taxable environment when the same returns were available with deferral (VA's). Both have expenses, both have degrees of liquidity.
Most of the 100k+ tickets were qualified plan transfers / rollovers, but they are out there.
With caps being not so high these days, I'm not sure you'll capture a lot of the market in good years, but you'll sure avoid the losses. From 2000 to 2012 (13 years) the S&P Total Return has an actual (not average) ROR of 1.67%. That's with POSITIVE years of 28%, 16%, 15% twice, 10%, and a couple of 5%'s. Avoiding the losses (-37%, -22%, -12%, -9%) is more important than getting all the gains.
You would be surprised at how LITTLE captive local agency management cares for securities and OSJ responsibilities. They would much rather their agents sell life, fixed annuities, and DI.
The 7 is under FINRA and if they had their way, so would the 65 be, and it may yet be one day.
Securities are what they are, and people want them. But unless you plan to make them an important part of your practice, I'd think twice. Or maybe three times.
- 15,041
I'm not talking 100k rollovers into annuities (VA, FIA, etc.). I'm talking, how often are you really going to take over a 100k plus account in mutual funds? Or execute a 100k+ ticket for mutual funds?
That is profitable, but I would argue the 6/63 guy will rarely see that. Most of that is going to get snatched up by your wirehouse/RIA guys and throw into managed money. Now, I know a 6/65 that makes a living rolling 401ks and IRAs into VAs.
But beyond VAs and VULs, I bet he has less than 5k GDC a year.
That is profitable, but I would argue the 6/63 guy will rarely see that. Most of that is going to get snatched up by your wirehouse/RIA guys and throw into managed money. Now, I know a 6/65 that makes a living rolling 401ks and IRAs into VAs.
But beyond VAs and VULs, I bet he has less than 5k GDC a year.
Similar threads
