journal of portfolio management
How to become and profit as a fee-based registered investment advisor
Does the registered investment advisor need a broker dealer? No, not in the capacity of an overseer. Every RIA needs a broker dealer to custodian their client portfolios. The most well known custodians are Schwab Institutional (http://www.registered-investment-advisor.com/schwab_institutional.htm), TD Waterhouse (www.advisorservices.com), Ameritrade Institutional (http://www.ameritradeinstitutional.com/ria-home.html), Fidelity Investment Advisor Group (www.ibg.fidelity.com). In order to sign on as an RIA with these firms, you need a clean ADV and typically at least $5 million in clients assets (although Ameritrade will take less).
Most states require Series 65 Uniform Investment Adviser exam. Some states require the principal of the RIA to pass the exam with a score greater than 70%. An alternative to the Series 65 is the combination of the Series 7 and Series 66 exams. The Series 66 is only good in conjunction with the Series 7. Although the series 7 is an FINRA exam, you do not need a broker dealer to take it. The 7/66 combination is generally used by an employee of a brokerage firm who is also registering as an investment adviser. http://www.registered-investment-advisor.com/series_65.htm. Essentially, the Series 66 equals the combination of the Series 65 and Series 63 exams. Certified Financial Planner (CFP), Accredited Personal Financial Specialist (APFS), Chartered Financial Consultant (ChFC), Chartered Financial Analyst (CFA), or Chartered Investment Counselor (CIC).
Often, people refer to registered investment advisors as investment advisors or investment managers or money managers. It really is a different position than selling stocks, bonds and mutual funds. http://www.registered-investment-advisor.com/money_manager.htm. The fee-based advisor looks after the investment portfolio and has two objectives: to retain the client and have the client's portfolio grow. Only by fulfilling these two objectives will the advisor see his income rise. The broker on the other hand, seeks typically to generate "gross" this month and may not have the same long term view. http://www.registered-investment-advisor.com/investment_advisor.htm.
If you are searching for any of the following topics:
You can find much more information by visiting
registered-investment-advisor.com. Please click to visit our site. Here is why you should visit us: