When Do You Have To Get Licensed As A Financial Advisor?

An "#OfficeHours with Michael Kitces" Periscope, looking at when you have to get licensed as a financial advisor. For further details, see www.kitces.com/blog/registere...

[@nedra111]

I am very happy I found your channel! Thank you for sharing!

[@SeanTheDon17]

Michael is a wealth of information! Always very helpful and great communication

[@losthollywood5125]

Well done! Thank you for the great content.

[@nickhernandez4657]

This video was incredibly valuable! Thank you!

[@gregoryfacey8088]

this was so helpful

[@jasondima1411]

Great information!!

[@james-sk1si]

Excellent

[@bryanjames9745]

Good Stuff!

[@mixumup1]

Thanks,nice vids... I have the perfect business to register. Hope national registration isn't a pain in the arse

[@elvinjng]

As a financial advisor do you pool the funds together to create a fund or just manage each account seperately?

[@antoniorivas1784]

Great videos!! One question: Do you still have to register with the state if you have less than US 25m of AUM?

[@MichaelKitces]

Antonio,
You have to register as an investment adviser if you hold out as providing investment advice. Period. Even with ZERO assets, you have to register as an investment adviser if you're in the business of advice.
The $100M threshold (which was $25M in the past and was increased to $100M) is simply when you SWITCH from state registration to Federal registration with the SEC.
The requirement TO register starts from dollar zero, the moment you launch the business and begin to solicit prospective clients to your advice business.

[@paulhensley9095]

You mention not needing the series 65 if you hold a CFP designation by can someone obtain the CFP without a series 65? For instance working to complete the experience requirements for the CFP without a series 65?

[@MichaelKitces]

No need for the Series 65 to get CFP experience. Yes if your experience is to actually go get clients and work with them, but there are lots of ways to support the financial planning process that don't require being registered as an advisor or taking the Series 65 in the first place.

[@paulgeisen5001]

I find your videos very helpful, Michael, as I am evolving from just a life insurance and annuity specialist to include providing investment advice to my clients. What do I look for when selecting a broker-dealer to register with? Thanks, Michael.

[@adamtechsolutions5331]

Thank you for your explanation. One thing I really dont understand is when said someone can advise people on investments without needing any license. But you need to ask for compensation. So how does it work? You said an example of the media who give advice. but the media guys dont ask for any compensation since they are paid by their media agency . Please help answer this. Thanks

[@MichaelKitces]

@Adam Simply put: if you person getting the advice PAYS for the advice, you have to be registered. If the person getting the advice doesn't pay, you don't.
Thus why Suze Orman, Jim Cramer, etc., don't have to be licensed. The person who calls into the TV show to ask for "advice" isn't paying them for the advice they receive. If you want to give advice and charge for it, the client is paying you, and you have to be registered.

[@desmondcollins1615]

I am not currently sponsored by any firms at the moment. If I pass the series 65 independently, will I need to pass series 66 and 7 later with with firm?

[@MichaelKitces]

The Series 65 is to get paid to give investment advice for a fee with a Registered Investment Adviser (RIA). The Series 7 is to sell brokerage products for a commission with a broker-dealer. They're different/unrelated licenses for different types of business.
So if you work for an RIA, you'll never need a Series 66/7, because you're not selling products. If you work for a broker-dealer in the future that sells products, you'll have to get your Series 66/7, because the Series 65 doesn't license you to sell (their or any) products, it's only a license to give investment advice for a fee under an RIA.

[@TheMurph303]

Would this be the same process if you want to manage a clients money like invest it in the stock market for them? Or is there a different process you have to go through if you want to trade stocks with a clients money and not just give financial advice?

[@MichaelKitces]

@TheMurph303 Yes, managing an investment portfolio triggers a requirement to register as an investment advisor. Registration is necessary when you're giving investment advice, and managing a portfolio on someone's behalf is considered a level of 'super-advice' (since you're not only advising, you're doing it for them). Managing client portfolios is the primary thing that a Registered Investment Adviser (RIA) actually does today.

[@Nopeagain708]

What was Mick Jagger’s college major?

[@Help-me-get-10k-subs-no-videos]

Hello AJ,
Can I handle my client's trading account and buy/sell on behalf of my clients and charge them annual fees and profit share like 2-20?
What is the quickest and easiest way to do it.

[@Nopeagain708]

Mick Jaggers, college major