How To Park Registered Representative Licnese

Canva - Eyeglasses With Black Frame Beside Macbook Pro Many financial advisors that are currently affiliated with a wirehouse or an independent broker dealer (IBD) firm that are thinking nearly starting their own contained registered investment adviser (RIA) business firm will often ask if it is possible to "hang" or "park" their series vii license at another firm? The answer is generally no unless the financial advisor volition have a big plenty brokerage business to justify a broker dealer firm to allow the advisor to affiliate with information technology in an active capacity.

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When there is a large enough brokerage business to justify an investment adviser to be dually registered every bit a registered representative (RR) of a broker dealer firm while simultaneously operating every bit investment adviser representative (IAR) of an RIA firm, such an individual will often be referred to every bit a hybrid advisor. Information technology should too be noted that RIA firms do not hold any licenses for private investment directorate, regardless of it beingness the Series 7, Series 65, Series 66, etc. The concept of the Series seven license being held by a firm is unique to the banker dealer industry.

While at that place are some exceptions, even the smallest of broker dealer firms will often require an advisor to have at least $100,000 of annual brokerage revenue to consider allowing a hybrid relationship. If that threshold is out of reach for an counselor, unfortunately it is not generally possible to simply "hang" or "park" a Series 7 license with a banker dealer firm. Not merely does "parking licenses" not make business sense for the broker-dealer firm, information technology can also lead to regulatory sanctions against the firm. As such, a financal advisor's Series 7 license will remain agile for 24 months after the advisor leaves his or her current broker dealer firm. If the counselor wishes to rejoin a broker dealer afterward the 24 months have passed, the advisor volition need to retake the Series 7 examination.

Equally RIA registration specialists, we often find that financial advisors are initially quite concerned most losing their Series 7 license, just they quickly come to realize that the advisory fee focus of their business organisation has made the Series 7 license unnecessary and at that place is often no business reason to try and go along information technology active for the future.

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