Financial Advisor Career (without licensing)

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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datamonkee
Posts: 59
Joined: Wed Sep 07, 2011 10:40 pm

Financial Advisor Career (without licensing)

Post by datamonkee » Fri Aug 05, 2016 2:40 pm

This is probably a really stupid question.

I was considering a financial advisor career as a side business, but the CFP licensing process seems cumbersome. Is there any way to be able to charge money for financial advice without having to go through licensing?

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powermega
Posts: 1131
Joined: Fri May 16, 2014 12:07 am
Location: Colorado

Re: Financial Advisor Career (without licensing)

Post by powermega » Fri Aug 05, 2016 3:55 pm

No, you cannot charge money for financial advice unless you pass the Series 65 exam and register with your state. Depending on where your clients live, you may have to register in those states as well. That would allow you operate as a Registered Investment Adviser (RIA) once you register with your state. An RIA that also has custody of client investments and trades on their behalf would also need the Series 63 and the Series 6 and/or Series 7 licenses, depending on the securities you would trade on behalf of your clients. You don't have to have custody of client investments in order to be an RIA though.

Series 65 License

The CFP designation is a pretty high hurdle, for good reasons. I think the biggest hurdle is the experience component (three years), though it has been watered down a little recently (see Kitces article). One thing you could do on the side to meet this requirement is to do some financial advising on a pro-bono basis, which can count towards your experience requirement.
Even a stopped clock is right twice a day.

datamonkee
Posts: 59
Joined: Wed Sep 07, 2011 10:40 pm

Re: Financial Advisor Career (without licensing)

Post by datamonkee » Sat Aug 06, 2016 8:38 am

Thanks for the advice. I will look into the RIA. I did not think that this would be easy. Chances are, I will probably drop this idea. Thanks.

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