Well, this is true that there is no particular license required for a financial advisor but to sell investment products these securities licenses are required. “The financial services industry is a ward of the state,” said Timothy Noah, an American journalist and author. Timothy Noah used to be a labor policy editor for Politico, a contributing writer at MSNBC.com, a senior editor of The New Republic, where he wrote the “TRB From Washington” column, and a senior writer at Slate, where for a decade he wrote the “Chatterbox” column. One of the best examples of a successful financial advisor is Ed Rempel, a certified financial planner and a tax accountant in Toronto who has built a reputation for helping Canadians understand the kinds of unconventional wisdom that will help them prosper financially. Ed Rempel CFP is also a frequent speaker for webinars, seminars, and conferences that are designed to help Canadians gain better control over their finances.
Here are various licenses that are required by a financial advisor:
Series 6 License:
Well, series 6 is one of the most important licenses that is required by a financial advisor. The license is administered by the Financial Industry Regulatory Authority or FINRA, series 6 allows the financial advisor to sell packaged securities like mutual funds or other variable annuities.
If the financial advisor only has a series 6 license then they are not allowed to sell individual bonds or stocks.
Well, series 6 is the starting license that is acquired by a new financial advisor, and after obtaining that they can advance themselves with the series 7 license.
Series 7 License:
Series 7 is the advanced version of the Series 6 license and it is called the gold standard of financial advisor licenses. Series 7 is also administered by the FINRA and this license allows the financial advisor to sell every type of investment product. A Series 7 license also allows the advisor to sell bonds, stocks, options, and futures. It also provides authority for selling packaged security no matter if you carry a series 6 license or not. There are few securities that even Series 7 can also not cover that require a Series 3 license.
Due to the broad authority that series 7 manages, it is the most difficult license a financial advisor can obtain.
Series 63 License:
If a financial advisor wants to conduct a business in any state within their borders they will definitely require a Series 63 license and each and every state requires the Series 63 license if you want to work within their boundaries. In addition to your Series 7 and Series 6 license, you will need to pass a 75-minute exam to get your Series 63 license. The exam concludes with questions regarding laws and regulations and a few questions regarding the financial advisor.
Series 65 License:
Well, the Series 65 license is the upgraded version of the Series 63 license, and the exam of the Series 65 license is much harder, heavy on rules and regulations the series 63 license test. There is a rule that the advisors who are not get paid on commission are only allowed to give this test. Also, if an individual holds a professional designation like CFP or CFA is eligible for the Series 65 license test.
Well, the role of the Series 65 license is similar to that of the Series 7 license.
