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Licensed Professional

Alternatively to meeting income and net worth criteria, certain individuals can qualify as accredited investors through specific professional licenses, as outlined by the Securities and Exchange Commission (SEC).

Understanding the Licenses​

To be deemed an accredited investor based on professional qualifications, an individual must hold one of the following licenses:

  1. FINRA Series 7 License (General Securities Representative License)
  2. FINRA Series 65 License (Uniform Investment Adviser Law Examination)
  3. FINRA Series 82 License (Private Securities Offerings Representative License)

Details of the Licenses​

FINRA Series 7 License​

  • Purpose: Allows the holder to sell a broad range of securities products, including stocks, bonds, and other investment products.
  • Requirements: Requires passing the Series 7 exam, which covers topics such as securities regulation, investment risk, and tax implications of various securities.

FINRA Series 65 License​

  • Purpose: Qualifies the holder to act as an investment adviser representative.
  • Requirements: Involves passing the Series 65 exam, focusing on areas such as laws and regulations, ethics, retirement planning, portfolio management, and investment strategies.

FINRA Series 82 License​

  • Purpose: Permits the holder to sell private securities offerings.
  • Requirements: Requires passing the Series 82 exam, which tests knowledge on private placements, regulations, and market structure.

Role of the Licenses in Accredited Investor Status​

Holding one of these licenses allows individuals to qualify as accredited investors regardless of their income or net worth. This provision recognizes the extensive knowledge and expertise of licensed professionals in securities and investment markets.

Documentation Required​

To verify accredited investor status through professional licenses, individuals should provide:

  • Proof of License: Copies of the relevant FINRA license(s).
  • Confirmation of Good Standing: Documentation from FINRA or the employing firm confirming the license is active and in good standing.

Investor FAQs​

  1. Do I need to maintain my license to retain my status as an accredited investor?:

    • Yes, you must keep your license active and in good standing to qualify based on professional credentials.

  2. Can other professional licenses qualify me as an accredited investor?:

    • Currently, only the FINRA Series 7, Series 65, and Series 82 licenses are recognized by the SEC for this purpose.

Conclusion​

By holding a FINRA Series 7, Series 65, or Series 82 license, individuals can qualify as accredited investors. This pathway acknowledges the professional expertise of licensed securities and investment professionals, enabling them to access private investment opportunities regardless of their income or net worth.