Question:
I'm interested in becoming an independent financial advisor because I don't want to feel obligated to push any one providers products/services. I want to know if I manage assets for a client, how best to collect commissions (a small percentage) and what is legally required in order to do so? My plan is to charge a reasonable hourly fee as well as a small percentage of AUM and I'm trying to figure out how to manage that aspect of the business.
Answer:
First of all, to do what you want to do, you'll need a series 6, if not series 7 license, as well as a series 63. The limits on what you can charge are all part of the study material, because there are laws limiting it. I believe most hedge funds charge about 1/2 % to 1% annually for assets under mgmt, and your fees can't be more than 5%. I recommend $75 flat rate + 1%. Start studying now...there's a lot to know.
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