A securities professional is a licensed sales personnel who works for broker-dealer firms and is involved in buying and selling securities such as stocks, bonds, mutual funds, and other investment products on behalf of their customers. They can be brokers or stockbrokers, technically known as registered representatives. A securities professional can be an agent, an investment adviser representative, or a person who serves in a supervisory or compliance capacity for a dealer. Securities industry professionals typically provide a wide range of products for their clients, including providing financial advice on the purchase or sale of certain securities, buying and selling securities, and contacting prospective clients to explain their service offerings.
The securities industry can be fast-paced and demanding, so it is important for securities professionals to have the following skill sets:
- Analysis: Securities professionals must be able to analyze risks and benefits of all securities options for clients quickly and effectively.
- Sales and marketing: Securities professionals need to be able to market their skills and knowledge to potential clients, compellingly conveying how their products can benefit their clients’ long-term financial needs.
- Relationship building: While understanding securities products is important, being able to build relationships with clients is ultimately what will make securities professionals successful. Building up a book of clients requires building trust, communicating effectively, and listening to clients needs.
Securities professionals need to obtain the proper securities license before acting as a registered representative or an investment advisor. The Securities Industry Essentials (SIE) Exam is a FINRA exam for prospective securities industry professionals, and to obtain a license following the SIE, the individual must be associated with a member firm to take a qualification exam. The products that registered financial professionals can sell depend on the licenses they hold.
