The independent financial advisory space is expanding at an unprecedentedly fast pace. The demand for investment banking services continues to grow as individuals and businesses try to charter new ways to deal with increasingly volatile markets and unforeseen economic downturns. There are currently over 17,000 investment agencies throughout the United States.
Becoming an Independent Investment Banker
Making a switch to an independent financial advisor can be quite rewarding. However, you may have to have to sit for FINRA licensing exams before acquiring the license to practice. Some of the broker-dealer exams may require sponsorship by an existing member of FINRA before setting for the qualification tests.
FINRA Exam Sponsorships
All top-off FINRA licensing exams require an active member of the organization to sponsor your application. The sponsor fills the applicant’s form U4 and pays for the examination fees. Once the documents are with the Central Registration Depository (CRD), a 120-day window opens up for the applicant to sit for their respective FINRA examination.
If the applicant passes their test, they acquire a license to practice while working under the guardianship of the firm that sponsored them. If the applicant fails, they may have to repay the examination fees through their sponsor and schedule another examination after 30 days.
The application for FINRA exam sponsorships may require your details to help fill out the FINRA form U4. The sponsor may have to conduct background checks on your professional and business conduct to find out if you are a right fit for their broker-dealer sponsorship program.
Licenses That Require FINRA Exam Sponsorships
Not all series examinations require sponsorship from certified broker-dealers. The SIE and the Series 63 exams may not require any sponsorship. However, you may require FINRA exam sponsorship for Series 7, Series 79, and Series 82. You may need to first sit for your SIE exam before becoming eligible to sit for the three representative-level qualification examinations.
Finding The Right Broker-Dealer to Sponsor You
It can be challenging to find a suitable partner firm for the FINRA exam sponsorships. The broker-dealer arrangement may have the sponsor having a hand in your daily operations. As such, you may need to find a company whose values and culture align with yours.
Additionally, you may need to find a firm with the necessary resources and technology to support you through your transition to becoming a certified broker. A strategic partnership with the broker-dealer sponsor firm means access to a pool of experts and their technology to help you grow your budding independent practice.
Series 79 and 82 Sponsorship
Bridge capital associates provide the Series 79 sponsorship and series 82 sponsorship to independent firms that wish to gain an investment banking license. The series 79 is suitable for professionals that wish to branch into investment banking services covering mergers and acquisitions, financial restructuring, and public investment banking. The Series 82 covers limited private security offerings.
FINRA exam sponsorships are an essential part of obtaining your investment banking license. You may need to find the right certified broker-dealer to take you under their wing. For series 79 or 82 sponsorship, reach out to Bridge Capital Associates.