Question

Please write a paper about the qualification process to serve as an investment adviser. Does an investment adviser have to acquire certifications to serve as an investment adviser? Do investment advisers have to be licensed? What are the qualifications necessary to serve as an investment adviser? Please integrate Matthew 25:14-30 and Luke 14:13-14 into the paper. You may use other biblical references.

Requirements: 500 words

Answer 1

Investment adviser is an individual or firm who is engaged in providing advice or recommendations to the organizations for issuing reports as per the securities market.

The basic qualifications for an investment adviser are as mentioned below:

The basic step is to become an investment adviser, they need to qualify the exam of uniform investment adviser law and this exam should be sponsored by the regulatory body of the state not by the brokers or dealers. This test should include the topic of federal securities laws and investment advice.

The test of investment adviser contains the total 140 multiple choice questions out of which 10 questions are not counted for the final grade. From the remaining number of questions that is 130, a candidate needs to give correct answers of 94 questions to qualify the exam of investment adviser. Candidate have three hours to attempt the test.

Yes, an individual or firm or investment adviser requires to take a certificate from their state exchange commission in order to provide the services to the investors as an adviser.

No, after qualifying the test of investment adviser or having a certificate, in that case individual or firm does not require to take license from the regulatory body to serve its duties as an investment adviser.

The general approaches for an individual or firm to serve as an investment adviser after qualifying the exam, then they should fulfill the any one of the mentioned below criteria:

• Individual or firm should register with their state exchange commission as an investment adviser or a representative of an investment adviser which identifies that person who can be easily provides advice or recommendations about the investment, fees of the investments and the legal requirements for the investments.
• Individual or form should be sponsored by a broker dealer and perform its duties as a licensed representative under the regulations of securities market.

The many persons or firms who do not need to register their names on state exchange commission which are as mentioned below:

• Accountants
• Attorneys
• Engineers
• Teachers
• Banks
• Brokers dealers
• Publishers
• Charitable organizations
• Advisers who are registered with the commodity futures trading commission

Those firms or individuals who managed their assets and the value of the assets are more than $100 million, then they require to file the securities with securities and exchange commission and the firms or individuals who are not covered in these criteria, then they required to register their assets or securities on their respective states commission. Any individual or firm who works on behalf of the company whose value of assets are more than $100 million, then they also required to file or register their assets on the securities exchange commission and also needs to mention the value of assets under the asset management company.

Most of the investment adviser choose the process of registration because this registration provides the higher freedom to the adviser to perform its duties. On the contrary, an investment adviser does not have that much freedom to perform its duties when they licensed.