Securities Lic...?

Mar 9, 2008

  1. TonyC
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    Anyone have a series 65 license? (Apparently its a license that allows you to earn commissions on a fee basis...)


    What are the advantages of having a 65 vs. a series 6?

    Do you have to get a sponsor?

    thanks in advance!
     
    TonyC, Mar 9, 2008
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  2. Charpress
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    Series 65 is required in most states to become a registered investment advisor. This comes under state regulation rather than SEC regulation.

    It allows you to charge fees for investment advise, true. But moreover it takes the risk away from being accused of giving unlicensed financial advice when a stockbroker blows the whistle because you moved someone away from their money-losing account.

    A RIA does not have to have a sponsoring broker-dealer. A big, big advantage. RIAs can handle mutual funds and a few other things. If you want to handle variables, then you would need a broker and probably a Series 6 at least.

    I did the Series 65 last summer and it was the best pain-in-the-butt work I have ever decided to undergo. I can now do seminars that are not "an insurance guy" type of thing, but more a "financial planner" type of thing.
     
  3. TonyC
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    Thanks Charpress...

    That's what i wanted to avoid....giving someone advice and not being covered by a license.
     
    TonyC, Mar 9, 2008
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  4. senior-advisor-indiana
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    How much does it cost to get your 65?
     
  5. Mr. Bill
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    I just looked at one website, it was about $200. Beleive me, a bargain at any price. You can also get set up with money managers with your 65.
     
  6. Charpress
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    You don't want to go cheap on this. The test is hard and a good deal of study is necessary.

    I used Kaplan which has a good 2-day class and very good text with sample test materials.

    If you do not prepare properly, all the work will be a waste of time since the key is passing the Series 65 test. Again, this test is not easy.
     
  7. Charpress
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    I should add that there is much, much more to getting licensed as an RIA than just passing the Series 65 exam. That is actually just one of the requirements. The bureaucratic requirements are more formidable than the testing requirements.

    Do you want to know more more? You may already be aware of this.
     
  8. Delta76
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    I took the 66 (65 & 63 together) and passed, but I thought it was a lot more tricky than the 7. Most likely because I didn't expect it to be so difficult. After switching B/Ds, I was informed that my 65 didn't make it over and had expired. If I want the 65 back again, I need to retake the test.:skeptical:
     
    Delta76, Mar 11, 2008
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  9. Mr. Bill
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    Actually, the 65 only allows you to be an Independent Advisory Rep of an RIA, there is a big difference.
     
    Mr. Bill, Mar 11, 2008
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  10. Charpress
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    That is the bureaucratic portion that I mentioned. You have to create an "entity" that is the RIA and is state licensed. You then have to set up accounts with FINRA so that you can pay the various fees (none, including most states, accept any fees except by direct transfer from FINRA). You then take the Series 65 so you can be a representative of your RIA entity. But you personally are the one licensed to give financial advice.

    The whole system is set up for larger broker/dealers with people who just handle this. If you are on your own, you have to go through the learning process of setting up the entity (easy) and then creating the accounts through FINRA to handle fees and disclosures (not so easy). And by disclosures I mean ADV filings.

    All of this is doable and worthwhile on the individual level. But there is no part of it that is a breeze.
     
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