Starting a financial advising firm
What are the regulatory hurdles to starting a financial advising firm? I also don't have my Series 7 and series 66 licenses? How do I obtain those licenses without a sponsorship?
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why do you want to start a firm? why not join a bigger one
I want the ability to control my own life. Please answer the question.
that doesn't explain why you want to start your own firm instead of joining one, you get massive autonomy at bigger firms, without the smaller firm headaches.
do some more research on the industry before you make a decision like this. no one starts their own firm from scratch, most people affiliate with a bigger broker like commonwealth, RayJay, hightower, and then set up their own shingle (all on their own dime).
you cannot obtain your 7 & 66 without sponsorship.
You need to set up the firm, register the firm, (lawyers$$$) have a compliance staff (you can't be your own compliance manager) bookkeeping, recordkeeping, etc. You're probably looking at a quarter million to build that all out before you even get your first customer.
What thebrofessor is trying to tell you is that at many firms you actually get to use all of their infrastructure in exchange for a cut of the profits, otherwise you are essentially running your own shop, with your own customers in your own office, paying your own rent, etc. Most new independants are actually groups of highly successful FAs that decided it's cheaper to build out their own back end then to keep on paying for the corporate one.
What is needed to start a financial advising firm? (Originally Posted: 08/06/2017)
What is needed to start a financial advising firm? i want to go into business for myself. What are the regulations that I need to overcome, etc?
Alright, so help me to understand this. I get hired at Bank of America to be a personal financial advisor. I build a massive client list and then I go private?
If you ever want to. Is it worth it for you to do the ops side of things? Top Merrill Advisors can earn $500k-$1m/yr. By the time the financials work out, there's a pretty good chance the time part of the equation won't.
Your best bet is probably google to figure everything out. here's a related investopedia article http://www.investopedia.com/articles/financialcareers/07/start-your-own…
You will probably need clients.
Take the series 65 and then file a form ADV with your state in order to register your firm as an invest adviser. With that in place, you'll be able to solicit financial advisory services to your clients.
Best of luck and if you make it big, throw me an allocation when I raise a new fund. :D
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