If you do not meet the traditional financial requirements for qualifying as an accredited investor, there is another way to achieve this investor status – as a Series 65 accredited investor. This means passing the Series 65 exam which qualifies you for accredited investor status. At the cost of $187 and about 60 hours of study time, and the taking of the 3-hour, 130-question exam, you can obtain a Series 65 license and be identified as an accredited investor.
What Is the Series 65 License?
The Series 65 license is administered by the Financial Industry Regulatory Authority (FINRA). It is an exam and securities license individuals must pass in order to operate legally in the U.S. as investment advisors. The 130 questions on the exam cover various economic subjects, such as client investment recommendations, investment vehicle characteristics, business information, laws, strategies, guidelines, and regulations. In order to pass the exam, you must achieve a score of 94 out of 130 questions answered correctly – a 72% pass.
Accredited Investor Status Through the Series 65 Exam
Immediately after passing the Series 65 test and obtaining your license, you may be able to purchase securities that are not SEC-regulated. This allows you to participate in real estate funds, angel investments, and more.
An individual with a Series 65 (Licensed Investment Adviser Representative) registration in good standing may qualify as a Series 65 accredited investor. The person with the Series 65 license must be registered with a state. The Series 65 exam, unlike some other FINRA series exams, does not require sponsorship by a member firm.
Accreditation is ideal for self-directed investors due to the investments they are able to access with their retirement wealth. Individuals with mutual fund retirement savings may not have the minimums required for investing cash in private investments, but they may have retirement savings that allow them to easily invest the minimums.
The options available to investors who have complete autonomy and control to invest retirement savings in alternative assets are ideal for self-directed investment accounts.
For the serious investor, a Series 65 accredited investor status may be considered regardless of accreditation, net worth, or income. This applies particularly to individuals who are making alternative and private investments for the very first time.
