FINRA & Licensing

FINRA

-Financial Industry Regulatory Authority -created July 2007, consolidation of Nat'l Assoc of Securities Dealers + NYSE's member regulation, enforcement and arbitration functions -self-regulatory org (SRO) -any planner or broker/dealer wishing to sell securities must register w/FINRA

FINRA registration process (5)

-Registration req's of any planner, broker/dealer or reg rep of one: 1) individual wishing to sell securities must associate with a broker/dealer 2) then registers w/FINRA via broker/dealer, completing background/info check using Gorm U-4 3) once registered, takes/passes appropriate licensing exam(s) 4) then issued a Central Registration Depository (CRD) # and printout of securities licenses held (important when registering to sell securities with other states) 5) maintains continuing ed reqs via broker/dealer annually ("firm element"), plus additional ed reqs at regular intervals ("regulatory element").

FINRA Series 66 (aka)

-aka Uniform Combined State Law Exam -combines Series 63 & 65 licensing reqs -holder can provide investment advice and sell securities to clients in any state

FINRA Series 63 (aka)

-aka Uniform Securities Agent State Law Exam -individuals must obtain to SELL securities within respective state, (common req of registering with a state)

FINRA Series 7

Broadest license, entitles selling any security, including individual stocks and ETFs

FINRA Series 6

Can sell all open-end investment (mutual funds), variable annuities, variable life insurance, and initially-offered (not secondary) unit investment trust

FINRA Series 65

Holder can provide investment advice within licensees state of residence (CFP reciprocity = waiver in some states)