I hear the question all the time: “What licenses do you need to be a financial advisor?” If you want to guide high-net-worth individuals through complex financial planning, you’ll need to tick off a few regulatory boxes. Once you’re set, you can help business owners, entrepreneurs, or families preserve and grow their assets more confidently. Below is my curated list of essential licenses and credentials, plus a few tips for sailing through the exams.
Consider The Securities Industry Essentials (SIE)
Before jumping into other licenses, I recommend tackling the Securities Industry Essentials (SIE) exam. It’s offered by the Financial Industry Regulatory Authority (FINRA) and serves as a starter for anyone hoping to work with securities. You don’t need a firm sponsor for the SIE, and it’s designed to gauge your foundational knowledge of ethics, product types, and regulatory structure.
- Time to prepare: Most people plan 4–6 weeks of study.
- Key tip: Steady reading and practice quizzes can build confidence for test day.
Obtain Your Series 7 License
If you plan to handle a wide range of investment products, like stocks and bonds, the Series 7 license is your next step. It’s widely recognized as the gold standard among financial advisor licenses (Investopedia). You’ll need a FINRA member firm to sponsor you for this exam, which underscores the importance of securing a position or affiliation before testing.
- Exam coverage: General securities, regulations, and suitability rules.
- Helpful resource: Many firms, including Edward Jones (Edward Jones), pay trainees to study full-time so they can pass on the first attempt.
Add The Series 6 License
Are you more interested in selling mutual funds or variable annuities? Then the Series 6 might make sense. It’s narrower than the Series 7, focusing on packaged products such as mutual funds and variable life insurance—often enough for advisors with specialized product lines.
- Who needs it: Advisors who concentrate on mutual funds, unit investment trusts, and annuities.
- Sponsor requirement: A FINRA member firm still needs to back you.
Fulfill The Series 63 Requirement
Almost every state expects you to pass the Series 63 exam if you conduct business within its borders. While the exam tends to zero in on state securities laws (sometimes called Blue Sky laws), it’s typically less daunting than the Series 7. Still, don’t dismiss it—regulatory compliance is critical when you’re working with larger portfolios.
- Coverage: State rules, registration of professionals, administrative procedures.
- Why it matters: You need it to legally operate across various jurisdictions.
Complete The Series 65 Or 66
If you’ll be compensated primarily through fees rather than commissions, you’ll likely need the Series 65. This license focuses on regulatory compliance, fiduciary responsibilities, and portfolio management. If you already hold the Series 7, you can combine certain aspects into the Series 66, which merges the Series 63 and 65 requirements.
- Fee-based focus: Series 65 is popular among independent, fee-only advisors.
- Combined approach: Series 66 covers laws, regulations, and adviser ethics.
Explore Additional Certifications And Credentials
Beyond these licenses, many advisors pursue further certifications. For instance, a Certified Financial Planner (CFP) designation involves advanced coursework, an exam, work experience, and ongoing ethics training (Accounting.com). Chartered Financial Analyst (CFA) is another gold-star credential, especially if you dive into research or portfolio analysis.
- CFP board requirements: Education, exam, experience, and ethics.
- Corporate preference: Employers often favor advisors who hold enhanced credentials.
Register With Regulators And Agencies
Depending on how many assets you manage, you might register with the Securities and Exchange Commission (SEC) or your state’s regulator. Typically, anything above $100 million in assets under management triggers an SEC registration. Otherwise, you’ll register at the state level, completing documents like Form ADV to disclose your business practices.
- SEC vs. state registration: Check the size of assets under management.
- Ongoing reporting: Expect to file annual updates and ensure continuous compliance.
Maintain Compliance And Keep Learning
Once you earn these licenses, it’s not time to relax entirely. FINRA requires continuing education, including courses on new regulations, ethics, and product updates. This is especially crucial for advisors serving high-net-worth clients, because you’ll want to stay current on tax strategies, estate planning techniques, and evolving market conditions.
- Ongoing training: Expect a Regulatory Element every three years.
- Professional growth: Reading, conferences, and networking keep your knowledge fresh.
If you’re still mulling your career path, you can glance at how to become a financial advisor for practical steps or decide if the advisory route even suits you by reflecting on do i need a financial advisor. And if you’re curious about what licenses do you need to be a financial advisor, you might ask in one breath: Which license does every state require, does my sponsor have to cover all my exams, what about mutual funds-only sales, should I jump straight to the Series 66, or can a CFP waive the Series 65? Each question leads you further along the path to becoming a truly trusted source of advice.
Ultimately, being a financial advisor goes beyond exams and paperwork. It’s about partnering with clients to envision and protect their future. With careful planning and the right licenses, you’ll set yourself apart as a go-to resource—and that’s precisely where you want to be.
