What You Should Do If Your Advisor Has Licensing and State Registration Updates

Advisors must hold the proper licenses and registrations to legally provide financial advice and offer certain products. Changes may include:

• New licenses or registrations
  Your advisor may now be able to offer additional services or work with clients in more states.

• Dropped licenses or registrations
  The advisor may have chosen to narrow their services or no longer operate in certain states.

• State registration changes
  These may reflect business expansion, relocation, or compliance adjustments.

• License suspensions or revocations
  These are serious regulatory actions that limit or prohibit certain activities and may indicate compliance or regulatory issues.

Not all changes are negative. The key is understanding how the change affects your relationship with your advisor.

Steps to Take

1. Review the alert carefully to understand what license or registration changed and when.

2. Check your advisor’s profile, especially the Registration and Exams section, for additional details and a registration map.

3. Ask your advisor directly how the change affects your accounts, services, or ongoing relationship.

4. If a license was suspended or revoked, your advisor may no longer be legally allowed to provide certain services. You may want to consider working with a properly licensed advisor.

How Advisor Registration Works

• Investment advisors managing less than about $100 million typically register with state securities regulators, while larger advisors usually register with the Securities and Exchange Commission (SEC).

• Advisors are generally required to be registered in the states where they do business, although limited exceptions may apply.

• Some states still require registration even when those exceptions exist.

• Broker-dealers must be registered in each state where they conduct business. There are no client-count exceptions for broker-dealer activity.

Always confirm that your advisor or broker is properly registered in your state.

Why This Matters to You

An advisor’s licenses and registrations determine:

• What services they are legally allowed to provide

• Where they are authorized to do business

• Which regulators oversee their activity and investor protections

Monitoring licensing and registration changes helps you stay informed and confident in your financial relationship.

If you have questions or feel uncertain, reach out to us anytime at [email protected].