Financial Services Brokers

Certification or Licensing

Financial services brokers can earn the title chartered financial analyst. While certification is not required, it is highly recommended. The CFA program, which is administered by the CFA Institute, consists of three levels of examinations. The CFA Institute reports that the average candidate takes three to four years to earn the CFA charter. Before taking the first exam, candidates must meet one of the following entrance requirements:

• have completed a bachelor’s program or equivalent program and received a degree
• be a current university student who is within 23 months from completing their undergraduate degree
• have a combination of 4,000 hours of work experience and/or college/university education that was acquired over a minimum of three sequential years and achieved by the date of enrolling for the Level I exam

Almost all states require brokers to be licensed. Some states administer written examinations and some require brokers to post a personal bond. Brokers must register as representatives of their firms with the Financial Industry Regulatory Authority (FINRA). In order to register with FINRA, brokers must first pass the General Securities Registered Representative Qualification Examination (Series 7 exam) to demonstrate competence in the areas in which they will work. In addition, they must be employees of a registered firm for at least four months. Many states also require brokers to take and pass a second examination—the Uniform Securities Agents State Law Examination (Series 63 or 66).