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Advisor Licensing is Becoming Much Easier

July 11, 2017

The SEC has approved a Finra proposal that will make it easier for people to get licensed in the securities industry, create a two-tier exam system and remove several outdated exams and licenses, Financial Advisor magazine writes.

Under the plan, individuals will be able to get and keep an industry license even when it doesn’t cover their specific role, according to the publication.

While the securities industry came out in support of the proposal, state regulators attacked it on the grounds that it would allow unqualified people to “park” licenses, Financial Advisor magazine writes. Finra, on the other hand, argues it will help the industry expand its pool of potential employees, according to the publication. In June Finra also wrote in a letter to the SEC that the current rules allow someone with no experience to start working as principals immediately after passing the Series 7 and Series 24 exams, according to Financial Advisor magazine.


The approved revamp will also split exams into an entry-level “securities industry essentials” exam and additional exams addressing specific securities and principal licenses, according to the publication.

Individuals will not have to be associated with a broker-dealer to take the essentials exam but will need that affiliation to get a full license to engage in the securities industry, Financial Advisor magazine writes.

Implementation of the exam and licensing overhaul is planned for the fourth quarter of 2018 but the actual date is still pending, according to the publication.

By Alex Padalka
  • To read the Financial Advisor article cited in this story, click here.