If you are thinking about starting a financial advisor business, there are a few licenses you will need to obtain. This article will outline the different licenses required and what they entitle you to do.
Business License
The first license you will need is a business license. A business license is required if you want to operate a financial advisor business. The license will entitle you to offer financial advice and services to clients.
This license can be obtained through your state or local government. The requirements for this vary depending on your location, so it is best to check with your local government body to see what is required. You will also have to pay a fee to obtain this license, usually around $100.
Series 3 License
The second license you may need is a Series 3 license. This license entitles you to trade commodity futures contracts and options on commodity futures contracts. You will need to pass the Series 3 exam to obtain this license.
The Series 3 exam is a multiple-choice exam that tests your knowledge of commodity futures and options. It is administered by the Financial Industry Regulatory Authority (FINRA). The exam fee is $265.
Series 6 License
The third license you may need is a Series 6 license. This license entitles you to sell mutual funds, variable annuities, and other securities products. You will need to pass the Series 6 exam to obtain this license.
The Series 6 exam is a multiple-choice exam that tests your knowledge of mutual funds, variable annuities, and other securities products. It is administered by the Financial Industry Regulatory Authority (FINRA). The exam fee is $265.
Series 7 License
The fourth license you may need is a Series 7 license. This license entitles you to sell securities products, including stocks, bonds, and options. You will need to pass the Series 7 exam to obtain this license.
The Series 7 exam is a multiple-choice exam that tests your knowledge of all types of securities products. It is administered by the Financial Industry Regulatory Authority (FINRA). The exam fee is $330.
Series 63 License
The fifth license you may need is a Series 63 license. This license entitles you to sell securities in your state. You will need to pass the Series 63 exam to obtain this license.
The Series 63 exam is a multiple-choice exam that tests your knowledge of state securities laws. It is administered by the North American Securities Administrators Association (NASAA). The exam fee is $155.
Series 65 License
The sixth license you may need is a Series 65 license. This license entitles you to give investment advice and sell investment products. You will need to pass the Series 65 exam to obtain this license.
The Series 65 exam is a multiple-choice exam that tests your knowledge of investment adviser regulations. It is administered by the North American Securities Administrators Association (NASAA). The exam fee is $155.
Series 66 License
The seventh and final license you may need is a Series 66 license. This license entitles you to give investment advice and sell securities products. To obtain this license, you must pass the Series 7 and Series 65 exams.
The Series 66 exam is a multiple-choice exam that tests your knowledge of investment adviser regulations and state securities laws. It is administered by the North American Securities Administrators Association (NASAA). The exam fee is $310.
Conclusion
In conclusion, there are seven different licenses that you may need to become a financial advisor. These include a business license, a Series 3 license, a Series 6 license, a Series 7 license, a Series 63 license, a Series 65 license, and a Series 66 license. Each of these licenses has an exam that you will need to pass to obtain the license. The fees for these exams range from $100 to $310.
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