We asked successful financial planning business owners for the advice they would give to a start-up firm.
I just get nervous because I’m making all these decisions myself since it’s the cheapest way to do it right now, and since I’m not super educated on it.
This is a win for clients who usually prefer to continue working with the advisor they’ve grown to trust, while also allowing these independent advisers to establish their new business with an existing client base, which should generate enough income to get their businesses off the ground.
Those interested in becoming financial advisors will make the decision to either go independent by establishing an investment advisory firm of their own, or to pursue employment as investment adviser representatives (IARs) with an existing investment advisory firm.
In order to serve as an investment adviser, state and federal regulators require that candidates hold the Series 65 license by itself, or the Series 7 in conjunction with the Series 66 by passing the related exams. The Series 65 Uniform Investment Adviser Law Examination exam is designed to be a self-study exam.
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There are a variety of study materials available including study manuals, exam preparation software and online or traditional classroom instruction.
The Series 66 is a 100-questions exam with 10 pretest questions.
The candidate is allowed 150 minutes to complete the exam, and a passing score of 72% is required.
The candidate has to successfully answer 94 of the 130 questions making the minimum percentage for passage 72%. The Series 7, formerly known as the General Securities Representative Qualification Examination is a 250-question test administered in two, three hour blocks.
Like the series 65, the Series 7 has 10 questions that serve as pretest questions allowing FINRA to pilot questions that may appear on future exams and the minimum passing score is 72% The Uniform Combined State Law Examination, also called the Series 66 exam, is similar to the Series 65 but because the Series 7 has testing overlap with the 65, the Series 66 was redesigned to test the additional topics found on the Series 65 without covering the product, analysis, and strategy questions which are tested on the Series 7.