Do you need license to raise capital?

Most often, someone who wants a fee for helping to raise capital (often referred to as a “finder”) is not licensed to do so, and generally speaking, use of a finder who is not a licensed broker-dealer is a violation of federal and state securities laws.

Do you need a Series 7 for private equity?

If you want to start a Private Equity firm you should have a FINRA, Series 7 and required state licenses (while not required to start) you should have an understanding of where to start.

What is the difference between a broker dealer and an RIA?

Independent broker-dealers function as full-service brokerage firms but remain free from the constraints and demands of a large Wall Street company. RIAs are independent fiduciaries who may associate with several broker-dealers, selling a range of products and services.

Who needs a Series 7 license?

Series 7 – General Securities Representative A candidate who passes the Series 7 exam is qualified for the solicitation, purchase and/or sale of all securities products, including corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts.

Is Ria a fiduciary?

A Registered Investment Advisor (RIA) is a person or firm who advises high-net-worth individuals on investments and manages their portfolios. RIAs have a fiduciary duty to their clients, which means they have a fundamental obligation to provide investment advice that always acts in their clients’ best interests.

Do financial advisors have to be licensed to provide advice?

Share. A: While financial advisors do not have to be licensed to provide advice, they are generally required to have various securities licenses in order to sell investment products. The specific products that an advisor plans to sell, as well as the method by which they receive compensation, determines which licenses are required to be obtained.

What is a capital markets services licence?

Capital Markets Services (CMS) Licence A company must hold a capital markets services (CMS) licence to conduct activities regulated under the Securities and Futures Act. Individuals representing CMS licensees or exempt financial institutions need to be appointed as representatives. Who needs to apply?

How do I become a registered representative or an investment advisor?

Whether you want to be a registered representative (RR) or an investment advisor, the first step in either process is obtaining the proper securities license. The license needed is determined by several factors, such as the type of investments to be sold, method of compensation, and the scope of services that will be provided.

What types of securities licenses do financial advisors have?

While there are several licenses geared toward specific types of securities, there are three general licenses that the majority of representatives and advisors usually obtain: The Series 6 license is known as the limited-investment securities license.