Basic Financial Advisor Credentials: By regulation, at a minimum financial advisors must pass the Series 7 exam offered by FINRA and meet continuing education requirements.
Additional Financial Advisor Credentials: Some employers may require these certifications as well:
- FINRA Series 63
- FINRA Series 65
- FINRA Series 66
- Chartered Financial Analyst (CFA)
- Certified Financial Planner (CFP)
CFA for Financial Advisors: Holding a CFA certifies a financial advisor as being particularly adept at understanding and analyzing financial statements and financial instruments, at a level of expertise comparable with securities research analysts. Accordingly, a financial advisor who is a CFA holder should be particularly qualified to conduct his or her own investment research with a high degree of competence.
Some employers encourage or even require the financial advisors on their staff to be CFA holders. This is most likely in the case of financial advisors who are expected to deal with a high net worth clientele, who may have especially complex financial needs. Holding a CFA also is a way for a financial advisor to differentiate himself (herself) and become more marketable to a sophisticated clientele.
CFP for Financial Advisors: Holding a CFP indicates that the financial advisor is especially well-versed in personal financial planning issues, well above the minimum requirements expected of a Series 7 holder. This also can be an extra requirement imposed by firms that wish to have financial advisors with above-average knowledge and ability, to increase their marketability among prospective clients, and to raise the chances that clients will be highly satisfied.
