Skip to main content

To practice as a financial adviser in Texas, do I need to pass FINRA Series 65 exam and the Texas securities law exam?

Frisco, TX |

I am not sure if these 2 exams (FINRA Series 65, and Texas Securities Law exam) are the only requirements that must be met before I can practice. I plan on set up a small LLC to advise which investments to make and to manage pre-existing accounts if the client prefers.

I am currently not in this field, so am not certain if there are other requirements I must meet.

Thank you.

The following seems to indicate that only the Series 65 exam is required, but not the Texas Securities Law exam. From: 3.B. Examinations 3.B.2 Q: What examinations are required for registration as an investment adviser? A: In order to register as an investment adviser a person must complete the Uniform Investment Adviser Law Examination (Series 65) or the General Securities Representative Examination (Series 7) and the Uniform Combined State Law Examination (Series 66). See Rule 116.3.

+ Read More

Attorney answers 1


What you need to do depends on what your definition of a "financial adviser" is. Assuming that you want to work as a registered investment adviser, then you have to be registered as such. Starting off with a small amount of assets under management, you would likely need to be registered as an IA with the state of Texas, and possibly with other states if you are serving clients in other areas. If your assets under management reach a certain threshold, then you become a federally covered adviser and register with the SEC instead of the states. If you are establishing an LLC, then its likely that the LLC must become registered as an RIA, and then you become registered as an employee of that entity. If you are looking to start a securities broker-dealer, then you must become registered with FINRA, with the SEC and with the states in which you do business.

The securities field is one of the most heavily regulated fields you can enter. Particularly if you have no experience in this area, it will be critical for you to find a competent securities attorney in Texas to consult with to ensure that you understand the rules and regulations with which you must comply. Your failure to comply with the industry's rules and regulations can be extremely costly to you.

This answer is for informational purposes only and is not legal advice. For legal advice, consult a lawyer licensed in your state.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer