| This newsletter has been developed to provide | | | | services professionals are other ways to |
| insights into the operation of the financial | | | | describe an RIA. Insurance Agents are |
| services industry, and to help individual | | | | licensed by individual state Departments of |
| investors make decisions concerning the type | | | | Banking and Insurance. If the agent sells |
| of advisement that best suits their needs. | | | | variable products, such as variable annuities |
| While there are many professionals who | | | | or variable universal life insurance, they |
| provide investment advice in one form or | | | | must also have an NASD License. |
| another, there are certain credentials and | | | | |
| licenses financial professionals should | | | | The NASD has many licenses, but many |
| possess before you entrust them with your | | | | professionals have at least a Series 65, |
| savings. We will explore the various | | | | which is an NASD license needed to be a |
| licenses and certifications to determine | | | | Registered Investment Advisor in many states. |
| which type of professional might be best | | | | This is the minimum, short of having no |
| suited to your needs. | | | | license at all. In order to be a Registered |
| | | | Representative, the minimum license needed is |
| Financial Advisor, Financial Consultant, | | | | a Series 6 from the NASD. This entitles a |
| Investment Advisor, Financial Planner, | | | | Representative to sell mutual funds, and |
| Registered Representative, Stock Broker, | | | | obtain an affiliation with a securities firm. |
| Variable Products Agent or Insurance Agent | | | | An insurance license to sell variable |
| are many of the terms used in the financial | | | | products enables the representative to also |
| services industry to describe the | | | | provide variable annuities or variable |
| professional duties performed. Fee based or | | | | universal life insurance. |
| commission based compensation are terms which | | | | |
| get thrown into the mix, causing client | | | | In order to advise and transact stock, bond, |
| confusion. In reality, a licensed | | | | REIT and limited partnership sales, as well |
| professional can have all of those titles, | | | | as mutual fund, ETF's, variable annuity and |
| perform all of those services, which we just | | | | variable universal life sales, a Registered |
| identified, and work in a fee or commission | | | | Representative needs to attain a Series 7 |
| based capacity with a client. | | | | license, as well as a variable life license. |
| | | | By obtaining a Series 63, disclosing all |
| The National Association of Securities | | | | investment advisement relationships to their |
| Dealers (NASD) is one of the associations | | | | broker/dealer and by registering with their |
| which self regulates the securities industry. | | | | state Bureau of Securities or the SEC, if |
| The Securities and Exchange Commission (SEC) | | | | assets are over 25 million, a registered |
| is the government agency which oversees the | | | | representative can have a dual registration |
| NASD and the exchanges, such as the New York | | | | as a Registered Representative and Registered |
| Stock Exchange (NYSE). The NASD licenses | | | | Investment Advisor. Once this stage has been |
| Registered Representatives, while the SEC or | | | | reached, an Investment Advisor can |
| individual state bureaus of securities | | | | demonstrate to a client whether fee based or |
| register investment advisors (RIA). | | | | commission based compensation is best for the |
| Financial Planner, Financial Consultant or | | | | client. |
| other terms used to describe financial | | | | |