Can you become licensed to broker stocks/mutual funds independently?
James E asked:
I’ve successfuuly worked in the the insurance business for the past 4 years, captive to my current company due to my current contract. I have thought about going out on my own as a totally independent agent offering Life/Health/Accident, (including long term care) but I also am interested in financial and estate planning. How do you become licensed “independently″ to broker mutual funds/stocks?
I’ve successfuuly worked in the the insurance business for the past 4 years, captive to my current company due to my current contract. I have thought about going out on my own as a totally independent agent offering Life/Health/Accident, (including long term care) but I also am interested in financial and estate planning. How do you become licensed “independently″ to broker mutual funds/stocks?
I do not want to be tied to one company, selling on that companies needs instead of my client’s needs. I feel being totally independent is the only way for me to go.
Suggestions? Comments? Answers?
No, you must be sponsored by a broker-dealer.
You might be able to be an independant finanical planner. i.e. you tell people what do to, and then they use a low cost trading platform (like Ameritrade) to implement it themselves. You would need a securities a ttorney to set that up for you and you may have to register with the state and federal regulators. (i.e. Investment Adviser’s Act of 1940)
In order to sell mutual funds and/or stocks, you need licenses from the NASD. If you want to be able to sell anything - i.e. stocks, managed accounts, wrap accounts, etc. - you’ll need your Series 66 and Series 7 licenses. You can go to Kaplan Financial’s website to find classes and testing times in your area. The tests and classes can be very expensive though. When I took my Series 66, I studied for about a month and for the Series 7, I studied for about three months.
You do need to have a broker/dealer, however most of them will have an “open architecture” policy that allows you to sell a variety of products. In that manner, It’s not like many firms in the insurance industry. Also, many B/D’s will pay for at least a part of the testing process.
Even if you want to be an “independent financial planner” as the person above said, you will still need the proper licensing. If you have other questions, feel free to e-mail me. Good luck!
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