May
17
No. Just passing the Series 65 exam is only one of the steps in becoming registered as an Investment Adviser Representative. Each state has its own requirements and they all must be met before you can solicit. The test center will give you a copy of your scores. Your record of passing the exam is also kept by FINRA’s “CRD” system for two years. Keep a copy of your score sheet for your own records.
General steps are:
- pass the Series 65 exam
- pay an application and an annual registration fee to the necessary State(s)
- file a disclosure document (sometimes referred to as an “ADV”)
- receive a letter saying your are registered.
If you need help in creating a disclosure document, contact us.
May
17
No. At the present time there are no continuing education requirements for those who have passed the Series 65 exam.
May
17
How do you set up an Introducing Broker for Commodity Futures?
May 17, 2012 | Consulting, Exams, Professional Designations | Comments Off
To become a Futures Introducing Broker you:
- Set up a clearing arrangement with a Futures Commission Merchant (“FCM”)
- Pass the Series 3 exam
- Join the NFA as an Introducing Broker
The NFA requires an IB to have a net worth of $45,000.00. If the proposed IB doesn’t have the capital necessary, it may establish a “Guaranteed Introducing Broker” where the clearing FCM “provides” the equity. As a guaranteed IB, the IB can only clear through its guaranteeing FCM. An independent IB (one that meets the net worth requirement) can establish clearing relationships with multiple FCMs.
You can study for the Series 3 exam while your application forms are being created and processed — but your registration isn’t complete until you finish all steps and show proof of passing the Series 3 exam.
What is a Commodity Trading Adviser and how do you become one?
A CTA is an individual or organization which, for compensation or profit, advises others as to the value of or the advisability of buying or selling futures contracts or options on commodity futures contracts.
Providing advice indirectly includes exercising trading authority over a customer’s account (“discretionary control”) as well as giving advice through written publications or other media.
Every registered CTA must give prospects a Disclosure Document. The Disclosure Document is intended to provide information customers need to make informed decisions – it’s basically two parts. One is a the background, business location, principals, advisory agreement, etc., and the second part is the performance history of the CTA.
To become a CTA you:
- Pass the Series 3 exam
- Join the National Futures Association (“NFA”) as a CTA (a $200 application fee and an annual registration fee of $750 per year)
- Submit your Disclosure Document to the NFA for registration
You are exempt from registration if you have provided advice to 15 or fewer persons during the past 12 months and do not generally hold yourself out to the public as a CTA.
A CTA is required to file the following:
- A completed online Form 7-R
- A completed online Form 8-R, fingerprint card and fee of $85 for each individual principal
- Each branch manager must pass the Series 30 exam or sponsorship by a broker-dealer and proof of having met the branch office manager requirements of FINRA
May
16
You can submit a U-10 form for the Series 65 exam and sit for it as soon as you’re application is processed and your 120 day window is established. The waiting period applies only to the specific exam you did not pass.
May
16
The “Series 11 Assistant Representative -Order Processing” category of NASD registration applies to persons associated with an NASD member firm who accept telephone or other communications from the public for the purposes of providing current securities quotations and accepting unsolicited customer orders for submission to the normal order execution operations of the member.
A Series 11 Assistant Representative-order processing registrant may conduct the above mentioned tasks only on the premises of the member, must be under the direct supervision of a registered principal, and may not receive extra direct or indirect compensation for the number or size of transactions effected. In addition, an Assistant Representative – Order Processing registrant is prohibited from:
• rendering investment advice or opinion
• making recommendations
• effecting transactions in securities markets on behalf of the member firm
• accepting or opening new accounts
• pre-qualifying potential customers
• effecting transactions in municipal securities or direct participation programs
• dually registering as a representative or principal.
There is no prerequisite to sit for the exam. The test fee is $60.00 and Form U-4 is used to apply. The test has a 1 hour time limit and 50 questions.
The Series 11 Assistant Representative – Order Processing exam covers the following topics:
Equity, debt and other types of securities 10 questions
Customer accounts and orders 24 questions
Securities Markets 5 questions
Regulations 11 questions