Registered Investment Advisors are becoming more and more popular among investors in the United States. One of the primary reasons is because their compensation is based on fees versus a commission structure. The fee based compensation allows the investment advisors to clearly have their client's best interest in mind versus say a mutual fund manager or full service broker that rely more on commissions and the churning of the portfolio.
The Registered Investment Advisor must be licensed in the states where their practicing as well as being registered with the Securities and Exchange Commission. There are variety of ways a Registered Investment Advisor can generate revenues through fee collection such as charging by the hour for their guidance, producing specific investment plans and portfolio management services.
Instructions
Become a Registered Investment Advisor
1. Study and prepare for the Series 65 exam. This test must be passed as a requirement for becoming a practicing Registered Investment Advisor.
2. Sign up to take the Series 65 exam by completing form U-10 from the Financial Industrial Regulatory Authority and sending in a hard copy or submitting it online with requested payment.
3. Pass the Series 65 exam.
4. Remit an application and annual registration fee to the states where doing business.
5. Register with the Securities and Exchange Commission electronically by filing a disclosure document, which is typically referred to as an ADV. Part 1 of the form can be submitted online. Part 2 of the ADV form must be completed in hard copy form and mailed in.
Tags: Registered Investment, Investment Advisor, Registered Investment Advisor, Series exam, with Securities Exchange