How Do You Become A Registered Investment Advisor?
Registered Investment Advisors are becoming more and more popular among investors in the United States. One of the primary reasons is because their compensation is based on fees versus a commission structure. The fee based compensation allows the investment advisors to clearly have their client’s best interest in mind versus say a mutual fund manager or full service broker that rely more on commissions and the churning of the portfolio. The Registered Investment Advisor must be licensed in the states where their practicing as well as being registered with the Securities and Exchange Commission. There are variety of ways a Registered Investment Advisor can generate revenues through fee collection such as charging by the hour for their guidance, producing specific investment plans and portfolio management services. How to Become a Registered Investment Advisor Step 1 Study and prepare for the Series 65 exam. This test must be passed as a requirement for becoming a practicing Registered I
An investment advisor manages large portfolios of assets for fees as opposed to commissions. There are several career paths that can lead to the title of investment advisor with a variety of educational and licensing requirements. A registered investment advisor is one that is registered with the securities exchange commission and thus regulated by a set governance of standards. Step 1 Understand the financial and securities markets. There is no degree required nor is someone required to become a Registered Investment Advisor (RIA). Step 2 Pass the Series 65 Exam. This is the Financial Industry Regulatory Authority (FINRA) exam that reviews how securities are transacted as well as how assets are managed. Most who take the Series 65 have other FINRA licenses such as the Series 6 or 7 which gives them further expertise in the industry. Note: If someone already possesses a Series 7, a Series 66 is all that is required to become an RIA. Step 3 Register through FINRA (or a FINRA registered
