This newsletter has been developed to provide insights into the operation of the financial services industry, and to help individual investors make decisions concerning the type of advisement that best suits their needs. While there are many professionals who provide investment advice in one form or another, there are certain credentials and licenses financial professionals should possess before you entrust them with your savings. We will explore the various licenses and certifications to determine which type of professional might be best suited to your needs.
Financial Advisor, Financial Consultant, Investment Advisor, Financial Planner, Registered Representative, Stock Broker, Variable Products Agent or Insurance Agent are many of the terms used in the financial services industry to describe the professional duties performed. Fee based or commission based compensation are terms which get thrown into the mix, causing client confusion. In reality, a licensed professional can have all of those titles, perform all of those services, which we just identified, and work in a fee or commission based capacity with a client.
The National Association of Securities Dealers (NASD) is one of the associations which self regulates the securities industry. The Securities and Exchange Commission (SEC) is the government agency which oversees the NASD and the exchanges, such as the New York Stock Exchange (NYSE). The NASD licenses Registered Representatives, while the SEC or individual state bureaus of securities register investment advisors (RIA). Financial Planner, Financial Consultant or other terms used to describe financial services professionals are other ways to describe an RIA. Insurance Agents are licensed by individual state Departments of Banking and Insurance. If the agent sells variable products, such as variable annuities or variable universal life insurance, they must also have an NASD License.
The NASD has many licenses, but many professionals have at least a Series 65, which is an NASD license needed to be a Registered Investment Advisor in many states. This is the minimum, short of having no license at all. In order to be a Registered Representative, the minimum license needed is a Series 6 from the NASD. This entitles a Representative to sell mutual funds, and obtain an affiliation with a securities firm. An insurance license to sell variable products enables the representative to also provide variable annuities or variable universal life insurance.
In order to advise and transact stock, bond, REIT and limited partnership sales, as well as mutual fund, ETF's, variable annuity and variable universal life sales, a Registered Representative needs to attain a Series 7 license, as well as a variable life license. By obtaining a Series 63, disclosing all investment advisement relationships to their broker/dealer and by registering with their state Bureau of Securities or the SEC, if assets are over 25 million, a registered representative can have a dual registration as a Registered Representative and Registered Investment Advisor. Once this stage has been reached, an Investment Advisor can demonstrate to a client whether fee based or commission based compensation is best for the client.
13 comments:
I wanted to thank you for this great post!! I enjoyed every little bit of it
Buick Air Conditioner Compressor
I am having a hard time looking for the best investment advisor. And I think this blog is on the right time. I read the while article and I now know what to do in choosing an investment advisor.
Investment property Baltimore MD
Wow its a very good post. The information provided by you is really very good and helpful for me. Keep sharing good information..
1985 Chevrolet Tahoe AC Compressor
I enjoyed every little bit of it, I have you bookmarked and waiting for all the new stuff you post.
1980 Chevrolet Biscayne AC Compressor
One thing that I would look for whenever I would need a CFP (certified financial planner) is their cfp certificate. Getting those kind of certification is required for a CFP in most places and getting those is difficult, ensuring that the certificate holder is definitely one of the best financial planner.
VW Jetta Turbocharger
This is my Good luck that I found your post which is according to my search and topic, I think you are a great blogger, thanks for helping me out from my problem..
I would really like your post ,it would really explain each and every point clearly well thanks for sharing.
Volkswagen Golf Turbo
Hey buddy that was a gud post
I have gone through your site information and it is the same opportunity that I was looking for. The facilities, the process that what you are offering are perfectly matched to my Expectation & very soon you will get Response from my side.
Dodge Neon Turbo
its nice to read a useful article for beginner like me. Some of points from this article are very helpful for me as I haven’t considered them yet. I would like to say thank you for sharing this cool article. Bookmarked and sharing for friends.
Dodge Neon Turbo
Dear Blog owner Thanks so much for this.! Your blog as usual was educational, I have had to bookmark your Blog and subscribe to your feed in i feed. Your content is awesome and theme looks lovely. It my pleasure that you visit my site MCX Tips MCX Gold Tips MCX Silver Tips
Thanks and Best Regards
BullionMCX.Com
It is really important for those who are preparing in taking their Series 63 Licensing Exam to review and study the Uniform Securities Act which will discuss the rules and regulations regarding finding customers and managing their accounts. This course is designed for those who wish to sell mutual funds and other insurance products.
I am looking for the investor advice; I think this post is really helpful for investment.
best way to save money
Your site is very nice and has good content. I am impressed with your site as it is helping people in taking their investing. Thanks!
Interest in advance home loan
Post a Comment