I've Got My Series 7, Now I'm Ready To Help People

Today I feel like taking on a title and designation I have seen being used by some individuals with the apparent purpose of signifying a high degree of training and education. The title is "registered representative" and the designation is a "Series 7." Your Financial Advisor may list these among their qualifications.

When I began in this industry, the title of this post was my belief.

Being a registered representative or holding a Series 7 license does not provide you the education necessary to dispense good financial advice. These designate nothing more than that an individual has met the minimum requirements to sell financial products. Yes, SELL financial products, not provide advice.

I once held a Series 7 when working for an insurance company. I spent a couple weeks reading a book, than took an exam. I scored a 93% on the exam. When I informed my sales manager that I had passed and provided my score, his first comment was "You studied 23% too much!" Odd. I was trying to learn as much as I could because I thought it would allow me to help people better, and my boss tells me it is a waste of time. This attitude is not isolated to this one individual.

So next time you see a financial advisor who proudly proclaims that he's a registered representative and holds a Series 7 license, understand how little weight that proclamation carries. Not only is the educational material very thin, but the belief is to only do enough to pass because knowing the material well is not important to selling product. Let me say that again...knowing the material will is not important to selling product!

And did you notice that there's nothing in there about helping you?


Roger Wohlner, CFP® said...

This post is so true. On a similar note I recall taking the Illinois Life/Health insurance test several years ago. Though I have always been fee-only and don't sell insurance I maintain the license as I was advised that it is a good idea if one is going to advise client on insurance matters. The exam is basically a joke as is the quality of the ongoing CE. Like the series 7 it doesn't (in my opinion) make one any more knowledgable in the subject area, it just allows you to sell product. No wonder the public is confused by all of the designations in our industry.

Chad Nehring, CFP said...

This post is absolute truth...anyone can "Cram and jam" or "Commit and Forget" to pass the 7...It makes them qualified no more than me running to Sears and buying a set of wrenches makes me a mechanic. It's a permission slip, nothing more.

Setu Mazumdar, MD said...

I agree. The same is true for the Series 65 and the use of "Registered Investment Advisor." The CFP designation has more relevance but even then most CFPs work for the dark side.

Post a Comment

Real Time Web Analytics