Series 65 Vs Series 7

Feb 26, 2016

  1. A.Lopez
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    A.Lopez New Member

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    I'm ready to take my practice to the next level. I have been offered the opportunity to get sponsored for my series 7. However, I don't know if I should go with the 65 instead. I know the basics of each. As well as how the compensation works. I would appreciate any feedback, or experience that could be shared. Thanks ahead.
     
    A.Lopez, Feb 26, 2016
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  2. Stephen
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    Stephen Guru

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    What does you practice look like now? What do you want it to look like? If you want to earn commissions for trading stocks and selling alternative investments then go for your 7. If you want to be paid a fee for % of assets under management or by the hour, then go with your 65. I have both, would go 65 first any day of the week.
     
    Stephen, Feb 26, 2016
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  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    For the Series 7, you'll be supervised by a B/D and regulated by FINRA. Hopefully, you can retain all your current insurance selling contracts, but I wouldn't necessarily count on it. At the very least, you'll need to disclose your OBA (outside business activities), but you'll have to do that with an RIA too.

    Definitely check on the employment contract with the broker/dealer with the Series 7 and how it may impact your current insurance selling.

    With the Series 65, it's not quite as heavy. Generally, as long as you disclose that you have the insurance contracts, and disclose your OBA on your U4... they don't care.

    With a Series 7 & registration with a B/D...
    - You'll have to archive all your emails for compliance review
    - All marketing (and online message board postings) must be reviewed by compliance before doing so - at least in regards to anything securities related.
    - You'll have to "friend" your compliance officer on LinkedIn to monitor everything you do.

    It can be very controlling for the B/D environment compared to the RIA route. But that is what you'll need to determine BEFORE you commit to working with them.

    Generally, with an RIA, they'll want to put your marketing "on file" for record keeping, but I think that's about it.
     
    DHK, Feb 26, 2016
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  4. DWPCL
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    DWPCL Super Genius

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    You will have to do all of the above if you place your 65 with an RIA as well.
     
    DWPCL, Feb 28, 2016
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  5. walthamny
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    walthamny Guru

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    If you are a RIA firm within a broker dealer you have to follow these rules. However, if you are an independent RIA with just series 65 and you are state registered, you just have to follow your state rules for RIA's. Most states don't have clear cut rules.
     
  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    First, I'm not a compliance expert.

    As an RIA/IAR:
    - Emails, yes, you'd still need to archive them as an RIA/IAR
    - Pre-approved online marketing messages? No. Although, it would be smart to file everything with your RIA for record-keeping purposes.
    - RIA/IARs, unless you have HIRED a compliance person, you don't have one. YOU are your compliance.

    The structure and regulations are very different between FINRA and RIA/IARs with the state or SEC.

    However, I will say, that it's a good idea to have been FINRA registered so you know how the compliance works... so it helps to keep you out of hot water as an independent advisor later.
     
    DHK, Feb 28, 2016
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  7. Tahoe Ray
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    Tahoe Ray Guru

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    Walthamny and you are correct. There is a big difference between being an IAR and an RIA.

    If you're an independent RIA, you really are your own compliance department and have to only follow your state's regs.
     
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