What is required of a financial advisor before providing services?

The requirement for a financial advisor to hold a Series 65 license is based on regulatory standards. This license allows individuals to provide investment advice and manage client portfolios, ensuring they possess the necessary knowledge about securities and investment strategies. The Series 65 exam tests the candidate's understanding of investment products, ethics, and relevant laws, which is crucial for delivering sound financial guidance to clients.

Holding this license provides assurance to clients that the advisor adheres to legal and ethical standards, which aids in establishing trust—a vital component in the client-advisor relationship. Other roles, such as offering comprehensive financial planning or tax advice, often require additional licensing or certifications, but the Series 65 specifically addresses the core competencies required for providing investment advice and navigating the complexities of financial markets.