Here are some examples that may make you rethink that statement:
FINRA FEE $350
FINRA Registered Branch Office (RBO) Fee* plus SIPC sign/brochures $120.00
State Registered Branch Office Fee* (See State Registration Fees Sheet)
Here is TN for your state:
Individual Fees
Initial Reg Fee $50
Transfer/Relicense Fee* $50
Renewal Fee $50
FINRA Special Registration Review Fee** Varies
Single Session Exams (Series 6) $85
Single Session Exam (Series 63) $96.00
Registered Principal Exam (Series 26) $85.00
Uniform Investment Advisor Exam (Series 65) $135.00
Errors and Omissions Enrollment Fee (Non-Refundable) $1100
Affiliation Fee $900
The RR shall not be employed by, or accept any compensation from, any other person or entity as a result of any business activity, other than a passive investment, outside the scope of the RR’s relationship with BD without the prior written notification to BD and approval by BD. The RR acknowledges that BD may prohibit any outside business activity by the RR, or place restrictions on any such activity. The RR agrees to make the books and records with respect to
any outside business activity immediately available to BD upon request, including, but not limited to, the RR’s bank statements, income tax records and other financial information. (This means you have to get permission from your Broker Dealer BD to sell insurance, sell a comic book on ebay, or open a lemonade stand, etc. It also gives them permission to look through your bank account, any financial assets and your underwear drawer).
All RRs are expected to produce a minimum of $10,000 in Gross Dealer Concession (GDC). If a RR’s production falls
below the minimum GDC, a low production fee in the amount of $1,000 will be incurred. (That's right if you don't produce 10k in business they will make you pay them $1000. Most BDs require 50k, 100k or more in Gross Dealer Concession Commission to keep your license).
If a RR is fined a low production fee for two consecutive years, he or she must attain ½ their annual GDC production by no
later than June 30 of the current production year. That is a minimum production level of $5,000 GDC. If this amount is not
reached, the RR will be subject to termination for cause (not meeting minimum company production.)
Pursuant to FINRA Rule 1031, a RR may not “park” his or her license with a broker dealer. The relevant portions of the rule
read as follows. A RR shall not be maintained if he or she: “(1) . . . is no longer active in the member’s . . . securities
business, (2) . . .is no longer functioning as a representative, or (3) where the sole purpose is to avoid the examination
requirement . . .” (This means you need to be selling or you will lose your license you just paid all of the money above for. Oh and don't forget the extra $1000 you had to pay them for not producing enough).
Someone else already mentioned running everything through compliance. That means your advertising, emails, anything writen going to a client. If not here are the fines for that: The fine for the first offense will be 0-$250.00; for the second offense, $250.00-$500.00, for the third offense, $500.00-$1,000.00; the fourth offense will be grounds for termination.
Ok that was some of the negatives. Now on a positive note. Let's say you run into a client with $100 a month for mutual funds. That's 5.75% GDC commission which is $5.75 and lets say you get 70% of that. That's a total as earned commission of $4.02 a month.
I could go on and on but do you get the point?
What a wonderful deal. Let's all get licensed!
ball.
