License

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iconsult100's picture
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Joined: 2005-09-06

I've gotten some nice offers from companies outside of the brokerage industry.  If I were to leave my Firm, can I still keep my 7 & 66 licenses in force through an LPL, Raymond James, or Wacovia platform, even if the business that I do is minimal?
I know CPAs who have their license and do practically no business.  I just don't want to throw away the work I've done to this point.

Starka's picture
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Joined: 2004-11-30

iconsult100 wrote:
I've gotten some nice offers from companies outside of the brokerage industry.  If I were to leave my Firm, can I still keep my 7 & 66 licenses in force through an LPL, Raymond James, or Wacovia platform, even if the business that I do is minimal?
I know CPAs who have their license and do practically no business.  I just don't want to throw away the work I've done to this point.

No.

Starka's picture
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Joined: 2004-11-30

Despite Mr. Singer's research, none of the above referenced firms allow "license parking".

Duke#1's picture
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Joined: 2004-12-06

Starka wrote:Despite Mr. Singer's research, none of the above referenced firms allow "license parking".
As Bill mentions, no firm (let alone the firms referenced) should park a license, as that's a violation.
Your mention of CPAs doing very little business MAY relate to revenue sharing programs that a number of firms have in place for CPAs & other professionals who refer business to their reps.  The CPA isn't really acting as a registered rep, but has the licenses through the b/d to enable the revenue sharing.

Starka's picture
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Joined: 2004-11-30

Mr. Singer,
With all due respect, the question asked was if the poster left the brokerage industry, could he/she keep his/her licenses alive through LPL, RayJay or Wachovia while doing "minimal" business, and the answer is no.  They simply won't put up with it.

Starka's picture
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Joined: 2004-11-30

"If I were to leave my Firm, can I still keep my 7 & 66 licenses in force through an LPL, Raymond James, or Wacovia platform, even if the business that I do is minimal?"
Mr. Singer, that was precisely the question that was asked.  What you have done (which is common among lawyers) was to assume that the poster was asking a question about his or her legal standing.  I, on the other hand, answered the question that was actually asked. 

Indyone's picture
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Joined: 2005-05-30

iconsult100 wrote:
I've gotten some nice offers from companies outside of the brokerage industry.  If I were to leave my Firm, can I still keep my 7 & 66 licenses in force through an LPL, Raymond James, or Wacovia platform, even if the business that I do is minimal?
I know CPAs who have their license and do practically no business.  I just don't want to throw away the work I've done to this point.

At the risk of getting drawn into the debate, I'll add that both sides of this argument have elements of truth to them.  Yes, Mr. Singer, it is absolutely legal to participate in the securities industry on a part-time basis, and yes, Starka, I too have serious doubts that any of the three firms referenced would be interested in a part-time rep with "minimal" production.  In fact, I would suspect that any of the three firms would, at best, be lukewarm about the idea of a part-time rep with respectable (say, $150,000) production.  For example, when I did due diligence at Raymond James early this summer, their compliance people indicated that they were looking hard at their partners program (the program where CPAs were licensed to revenue share in commissions) because they were concerned about potential firm liability for other areas of the accountant's practice (i.e., tax and accounting).
Without asking and knowing for sure, I would guess that all three firms would take a very dim view of supporting reps who did securities as a "sideline".  There are firms such as HD Vest that do precisely that, but they are specialty firms that understand the main business and are comfortable with supporting part-time reps who earn the vast majority of their income as CPAs, etc.
iconsult, if I were in your shoes, I would ask the question of the firms you are interested in before you make the move and see what is available.  My guess is that the best firms would be less than enthusiastic about your plans, but you might find a smaller niche firm such as HD Vest that would be interested in supporting you.  On the flip side, with the cost of compliance rising, these firms will probably get harder and harder to find, so if I were you, I'd take a hard look at what you really want to do and either stay in or get out.
That's my opinion for what it's worth.

frumhere's picture
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Joined: 2005-02-22

Most people talk to themselves.  Lawyers argue with themselves. 
In my opinion a lawyer is a person that talks slow because he bills you by the hour.

Duke#1's picture
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Joined: 2004-12-06

frum, Bill Singer has a lot better lawyer jokes than that!

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