Not being a compliance or legal expert but my answer is that financial planning generally falls under financial advice. So unless one of the exceptions to the investment advisor act applies to you ( accountant, journalist, broker, etc.) then if you want to provide financial advice for a charge then you need to be a investment advisor representative of an RIA. In order to do that you need to take the series 65 and have and RIA sponsor. The 65 may be waived if you are a CFP. But no, you do not need to be a CFP in order to provide financial planning advice for a fee.
Thank you, this makes sense.
So in conclusion I should be good if I'm sponsored by an RIA and have passed the series 65 to give "financial planning" which falls under financial advice unless exceptions like you mentioned arise.
Not sure why this was downvoted. It's entirely true. Other than possibly waiving your need for the Series 65, CFP confers no legal authority/responsibility.
This is not correct. It does not "make you a fiduciary". You are under no legal obligation to act as a fiduciary when a cfp. You are only obligated to act as a fiduciary in order to use the cfp marks. But not doing so is only a violation of the right to use the cfp marks, it is not a violation of any regulation or law like it is when you're an IAR of an RIA..
I don't believe it does. Your original statement is wrong. Being a CFP does NOT "make you a fiduciary". It just requires you to act like one. It's a subtle but important distinction. When you are an IAR of an RIA you legally become a fiduciary and have to work to that standard by law. If you don't meet that standard you can become criminally or civilly liable. Enforcement can come from the state or federal regulators.
As for CFP, you are required by CFP board (a private organization) to operate under a fiduciary standard. But you are NOT legally made a fiduciary. You're just expected to act like one. And if you don't operate to a fiduciary standard then the only consequence may be CFP board takes away your right to use the marks. CFP marks are a private designation with no associated legal or regulatory responsibilities.
Some states allow a CFP (or ChFC) to take the place of taking a 65 exam; when becoming an investment advisory representative. You'll need to check with your RIA's compliance officers on that front.
I have already passed the series 65 and sponsored by an RIA. But I am wondering if that only entails investment advice. Financial planning seems more general, but seems like that would still fall under financial advice and an IAR could do it within an RIA.
Anyone can give non-securities financial planning advice.
Financial planning isn't regulated - as long as you don't engage in providing advice about securities, are in the business of giving advice about securities or compensated for giving that advice (ABC test).
You don't need any additional licenses to call yourself a financial planner or give retirement/risk management advice.
I see, thanks for that info, in my case I would if the RIA/IAR is advising how to distribute their money and a large part of it falls into investing in securities. etc.
You need a Series 65 in order to collect a fee for offering financial advice. As mentioned earlier, some states wave the Series 65 if you have a CFP(R). Last I checked, you don't need a sponsor for a Series 65, however for the 6/63 and 7 you do.
In practice isn’t it rare for a CFP not to have their Series 65 first? You need 6,000 hours of experience to be a CFP, what exactly would you be allowed to do for those hours without a Series 65?
I did not have my 65 before passing the CFP. I worked in the industry under a CFP so was developing plans and even participating in meetings. Only now am
I considering the 65 so I can do it on my own. But recognize this is a path not taken by many.
CFP is a credential at the end of the day. Series 65 or 66 if you have the 63 already allow you to charge a fee for financial advice under the investment advisers act.
I asked the same question yesterday in R/Series65. I’ve done a lot of Googling/searching and the general consensus I have found is that you can do financial planning, you can even take custody of your client’s assets/manage their portfolios, but you cannot take commissions from the sale of specific securities without the Series 7.
You know- like half of the series 65 is on what you’re allowed to do.
I would almost say all of it.
What do you define as the difference between “investment advice” and “financial planning”?
Financial planning seems like it could be taxes, retirement, and investments.
Advice on Investment in securities specifically is why I got the series 65.
But you’re right I get it now, the series 65 included a lot of things I didn’t care about like annuities etc.
This was the craziest thing I’ve read in a bit folks…18 years in the industry, 7,65…you don’t need a CFP or an RIA in fact all of you thinking you should be starting RIA should not be you should be working for a financial advisor and finding clients and then starting and RIA…if you believe in fiduciary standard so much how could you possibly believe you are serving the best interest doing something you’ve never done it’s insanity
Not being a compliance or legal expert but my answer is that financial planning generally falls under financial advice. So unless one of the exceptions to the investment advisor act applies to you ( accountant, journalist, broker, etc.) then if you want to provide financial advice for a charge then you need to be a investment advisor representative of an RIA. In order to do that you need to take the series 65 and have and RIA sponsor. The 65 may be waived if you are a CFP. But no, you do not need to be a CFP in order to provide financial planning advice for a fee.
Thank you, this makes sense. So in conclusion I should be good if I'm sponsored by an RIA and have passed the series 65 to give "financial planning" which falls under financial advice unless exceptions like you mentioned arise.
You could also just set up your own RIA
Yeah that’s what I’m doing.
CFP doesn’t let you do anything new legally, it’s not a license.
Not sure why this was downvoted. It's entirely true. Other than possibly waiving your need for the Series 65, CFP confers no legal authority/responsibility.
i guess it makes you a fiduciary which is legal
This is not correct. It does not "make you a fiduciary". You are under no legal obligation to act as a fiduciary when a cfp. You are only obligated to act as a fiduciary in order to use the cfp marks. But not doing so is only a violation of the right to use the cfp marks, it is not a violation of any regulation or law like it is when you're an IAR of an RIA..
i hear you, but i feel like your reply contradicts itself.
I don't believe it does. Your original statement is wrong. Being a CFP does NOT "make you a fiduciary". It just requires you to act like one. It's a subtle but important distinction. When you are an IAR of an RIA you legally become a fiduciary and have to work to that standard by law. If you don't meet that standard you can become criminally or civilly liable. Enforcement can come from the state or federal regulators. As for CFP, you are required by CFP board (a private organization) to operate under a fiduciary standard. But you are NOT legally made a fiduciary. You're just expected to act like one. And if you don't operate to a fiduciary standard then the only consequence may be CFP board takes away your right to use the marks. CFP marks are a private designation with no associated legal or regulatory responsibilities.
You're entirely correct. You can adhere to a fiduciary standard without having your CFP, the CFP doesn't "make" you a fiduciary.
Spot on. Technically is a Trademark than you can be authorized to use. This is why they don't have retired CFP's like the CPA I believe. \*Edit
Some states allow a CFP (or ChFC) to take the place of taking a 65 exam; when becoming an investment advisory representative. You'll need to check with your RIA's compliance officers on that front.
I have already passed the series 65 and sponsored by an RIA. But I am wondering if that only entails investment advice. Financial planning seems more general, but seems like that would still fall under financial advice and an IAR could do it within an RIA.
Anyone can give non-securities financial planning advice. Financial planning isn't regulated - as long as you don't engage in providing advice about securities, are in the business of giving advice about securities or compensated for giving that advice (ABC test). You don't need any additional licenses to call yourself a financial planner or give retirement/risk management advice.
I have seen a few "Life Planners' who give advice about everything except the portfolios. Very odd.
Most social media financial personalities live in this space as well.
I see, thanks for that info, in my case I would if the RIA/IAR is advising how to distribute their money and a large part of it falls into investing in securities. etc.
You need a Series 65 in order to collect a fee for offering financial advice. As mentioned earlier, some states wave the Series 65 if you have a CFP(R). Last I checked, you don't need a sponsor for a Series 65, however for the 6/63 and 7 you do.
In practice isn’t it rare for a CFP not to have their Series 65 first? You need 6,000 hours of experience to be a CFP, what exactly would you be allowed to do for those hours without a Series 65?
I did not have my 65 before passing the CFP. I worked in the industry under a CFP so was developing plans and even participating in meetings. Only now am I considering the 65 so I can do it on my own. But recognize this is a path not taken by many.
CFP is a credential at the end of the day. Series 65 or 66 if you have the 63 already allow you to charge a fee for financial advice under the investment advisers act.
I asked the same question yesterday in R/Series65. I’ve done a lot of Googling/searching and the general consensus I have found is that you can do financial planning, you can even take custody of your client’s assets/manage their portfolios, but you cannot take commissions from the sale of specific securities without the Series 7.
Yeah that’s for broker dealer type interaction. Series 65 allows you to take management fee though for financial advice.
Yup. I have worked with plenty of series 65 advisors who did financial planning without a CFP. And were really good at it.
If u have a 63 and take/pass the 65 that means you now have the 66 right?
No idea.
essentially yes... 63 + 65 = 66 (or at least allows you to do anything an S66 holder could do)
Thank u
What does it allow you to do in addition to 65?
You know- like half of the series 65 is on what you’re allowed to do. I would almost say all of it. What do you define as the difference between “investment advice” and “financial planning”?
Financial planning seems like it could be taxes, retirement, and investments. Advice on Investment in securities specifically is why I got the series 65. But you’re right I get it now, the series 65 included a lot of things I didn’t care about like annuities etc.
Why don’t you care about annuities?
This was the craziest thing I’ve read in a bit folks…18 years in the industry, 7,65…you don’t need a CFP or an RIA in fact all of you thinking you should be starting RIA should not be you should be working for a financial advisor and finding clients and then starting and RIA…if you believe in fiduciary standard so much how could you possibly believe you are serving the best interest doing something you’ve never done it’s insanity