A financial advisor is a specially trained professional who offers financial planning and investment advice. In many countries, anyone wishing to work as a financial advisor must first obtain a license from the appropriate authorities. This ensures that the advisor’s clients have the expert knowledge required for certain aspects of the job, such as providing advice on securities investments. A financial advisor license in the United States can be obtained passing the Series 7 and 66 exams.
The Uniform Combined State Law Examination, which covers all of these licenses, is administered the Financial Industry Regulatory Authority (FINRA). The purpose of this test is to ensure that investment professionals are familiar with the rules of public investing. Passing the Series 7 requires a score of 70 or higher, and passing the Series 66 requires a score of 75 or higher. To obtain a financial advisor license, the candidate must pass both examples.
You must have a sponsor in order to take the Series 7 exam. Because you should be working in the financial services industry before taking the exam, your employer will most likely be your sponsor and will cover the course costs. Although the Series 66 exam does not require a sponsor, the two exams are frequently taken at the same time, with the employer covering all costs.
Once you’ve found a sponsor, you’ll need to fill out form U10 for the Series 7 exam and form U4 for the Series 66 exam. The forms, along with the exam fees, should then be sent to FINRA. You should now begin studying for the tests, which for some people can be intimidating and overwhelming. There are many study resources available online and in print, including practice tests.
Following that, you’ll get a Notice of Enrollment in the mail. This form confirms your registration and gives you a date when it will expire. Both exams must be passed before this deadline, which is usually 120 days from the date of registration. Other test-taking information, such as exam locations, will be included in the Notice of Enrollment. Find a local exam center and call to schedule an appointment, allowing enough time to study before taking the tests.
Bring extra pencils and blank paper to do calculations on test day, even if the test will most likely be administered computer. Make sure you get plenty of rest the night before the test and eat a healthy breakfast on test day. The tests will take a few hours to complete, and they will not be taken on the same day, despite the fact that they are usually scheduled close together. If you do not pass, you may retake the exams as long as you do so before the original 120-day deadline.
Some common financial jobs do not require a financial advisor license, but selling real estate, insurance, bonds, mutual funds, or stocks does. These types of financial products cannot be recommended to a customer without a financial advisor license. He or she can only speak objectively about all available products, giving the customer enough information to make an informed decision.