Frequently Asked Questions: Licensing
Determining which affiliation option is best for you is the first step in getting started with H.D. Vest. We have two ways that you can affiliate with H.D. Vest.
The first is as a Fee-Planning affiliate. This option allows you to work with your clients solely on a fee basis. This means that you can offer your services to clients by charging them on an hourly basis or a fee for a financial plan. You can also offer money management services using our four fee-based programs. In these programs you charge the client an annual fee based on the assets being managed.
The second option is to affiliate as a Registered Representative. By choosing this option you will be compensated on a commission basis. By choosing this option you will meet with your clients, determine their needs and then be compensated via a commission once they implement the plan. If you choose to start with this option you can also add the ability to offer fee-based services if you like.
To determine which option is best for you and your practice, please call the H.D. Vest Recruiting department. They will be happy to discuss with you the pros and cons of each option and evaluate which one is best to start with for you and your clients.
First, you will need to decide which affiliation option is best for you. Both of the affiliation options will require licensing. If you choose the Fee-Planning affiliation you will only need to get the Series 65. If you choose to affiliate as a Registered Representative you will need to become securities licensed by getting either the Series 6 or Series 7 license and then the series 63. The 6 will allow you to offer mutual funds, unit investment trusts and if insurance licensed, variable annuities. The 7 allows you to sell everything the 6 does and also individual stocks, bonds and options.
of our Advisors obtain the series 6 license. Why? Because it is more than adequate for what they want in their practices. Think about it this way: Do you want to manage individual security portfolios where the client is inclined to call you on a daily basis to see how the portfolio is performing, or would you prefer to implement sound financial advice utilizing mutual funds that are professionally managed by a team of analysts that have management of that portfolio as their only job responsibility? For most of our representatives, it is a simple business decision.
If you have the time, and you’re motivated enough to go through the additional study time, you can take the series 7 exam. It will provide good insight, and if nothing else, you’ll learn enough about individual securities and options enough to realize when they are not the best strategy for your clients.
How quickly you get licensed really depends on how serious you are about getting up and running. If you drag it out, it will take a long time. The minimum recommended study time for the primary exams are:
| Exam | Study Time |
|---|---|
| 6 | 40 hours |
| 7 | 90 hours |
| 63 | 20 hours |
| 65 | 45 hours |
If everything checks out on your U4, that means Compliance doesn’t have any additional questions for you, you can expect to be active within one to three weeks after we receive your application and form U5 from your prior broker dealer.
We don’t allow our Advisors to act as OSJs. An OSJ handles all of their own compliance, sales supervision and processing of business. Not only is it difficult to be an OSJ it also opens you to a lot of liability. For us to properly supervise and support our Advisors we cannot allow them to be OSJs.
Once you become effective you will receive a letter from our Securities Licensing department letting you know you are effective. Within three days of becoming effective you will receive a call from your Financial Planning Support consultant. They will welcome you aboard and help you to make the transition into the H.D. Vest system and start offering financial service to your clients.
It’s very easy. The first thing you will need to do is complete the Licensing Application for the affiliation option you choose and the three fingerprint cards. When you complete those, send them in via Priority Mail. Once we receive them we will get you entered into the system, your application will be reviewed, and once it’s approved we’ll set up your exam window(s) and order your study materials for you. Once you get your materials, start studying and then pass the exam(s). After you’ve passed your exam(s), FINRA will review everything and then notify us when you are approved and you will become effective. Once you are effective you can begin working with your Financial Planning Support consultant and taking part in our extensive training programs. After that you can start to make a difference in the financial lives of your clients.