Must be liscensed to own a company?

Discussion in 'Professional Trading' started by Dima, Mar 18, 2002.

  1. Dima


    I used to have my series 7 and my 66, but then I decided I would rather be a high school teacher, so I left the job and let my liscenses expire. So now i am in Grad school, and working for a small mortgage broker company. We have a specialized business, and we are in need of a financial advisor. We used to outsourse all our work, but we were getting nothing in return, so now we have to do it all inhouse. My question is what is involved for us to open a small firm with one or 2 advisors in it? We want to open this company on the side, but the owner of the company does not want to get liscensed. How do we do this? I woul dreally appreciate any help, or where we can go to talk to someone about this.

    Thank you
  2. ktm


    I would suggest checking with your state office that handles such licensing. Each is a bit different. In Virginia, the owner - or Investment Advisor - need not be securities licensed, however they must file an ADV and a great deal of paperwork, disclosure info etc...

    The folks who will be doing the counseling/advising - Investment Advisor Representatives - must be licensed. Here in VA, that usually entails a 63, 65, 66 or some such combination...again your state may vary but this is the basic theme.
  3. Dima,

    I don't give advice on the boards, but I could send you in the right direction. There are some firms that offer a "franchise" type deal that would fit your needs. Pick up a copy of Registered Rep. magazine and you will see many firms. It might make sense to go with an established firm and open a Branch office, since you will get economies of scale, clearing systems(over the net), full menu of Financial planning products,whole life, mutual funds etc. You will also have a name with national advertising that people will trust. You may be be required to obtain insurance licenses and or
    General Sec. Rep. (Series 7) ,Series 63 (Blue Sky Laws) and a background investigation depending on what you sell & the state you are registered in .
    Securities licenses(NASD), usually expire after a two year lapse.
    See these well known Financial Planning firms firms for details:

    Linsco Private Ledger

    Lincoln Financial Advisors

    AXA Advisors LLC

    If you are able to become a representative with one of these companies, you may be able to use their LOGO & trademarks as
    part of your sales and marketing compaign. Check with the firms for details.

    See Financial Planning Interactive , a web site for Financial Planners at . It looked interesting. Good luck.

    Gene Weissman
    Lieber & Weissman Sec., L.L.C.
  4. Dima


    Well, I used to work for AXA< and will not go back to them as thery will not allow us to do what we want. A little background on us, we have a well established book of clients that we can use, so a "name" would not be importnatn for us. We would need a good planner first off, then we would also need this person to be liscensed in the 66, 7, life and health, ... You know the drill. The president of the company would open a small side shot of the exhisting comapny, and give the planner complete control of his own thing, but the planner WILL have to answer to the president, who will own the planning company as well. So it goes in a big circle. with the president on top of it all. Does he have to be liscensed in the state of CA?

  5. Dima,

    Call the NASD and Security reglators in your state for answers.
    You can find the phone numbers on a web search easily.
    You would still have to pic a firm for your products & clearing. I would give Linsco(LPL) a call. I cannot give financial or business advice in this forum. Good luck .

    Gene Weissman
    Lieber & Weissman Sec., L.LC.