Becoming a Financial Planner in North Dakota
Job Service North Dakota predicts a bright future for those who wish to become financial planners in the state. In the current ten-year period ending 2018, job openings for personal financial advisors are expected to increase by a remarkable 34.30 percent. Jobs for securities sales agents should increase by 15.48 percent, while opportunities for agents who sell life insurance and annuities should grow by 17.29 percent during this period.
Forty-Five point two percent of adults in North Dakota had at least a two-year college degree in 2009, and another 24 percent of adults in the state had some college education but no degree (data provided by college education advocacy group, Lumina Foundation). This rather high proportion of college graduates and attendees suggests college enrollment in the state will continue to rise. This is despite the fact that the state is projected to lose many young adults and young families, whose numbers have decreased in recent years in what has been termed “out-migration.” Despite the out-migration of younger residents, North Dakota’s middle class will continue to pursue higher learning, and middle class families will continue to seek the expert advice of financial planners who specialize in building and maintaining college savings plans.
The American Community Survey reported that North Dakota was the only state that experienced an increase in median household income between 2008 and 2009. The survey revealed this increase was substantial, at five percent. In 2010, the median household income in North Dakota was higher than the national average, at $48,670. At $42,764, North Dakota’s average per capita personal income was the eleventh highest in the nation in 2010. All of these economic indicators project a ready market for the services of financial planners in North Dakota, as individuals and households with higher incomes are more apt to take advantage of wealth management services.
How to Obtain an Investment Adviser License in North Dakota
The North Dakota Securities Department is accountable for the registration and licensure of investment adviser (IA) firms and representatives (IAR) who have clients in the state. The state requires all investment advisers and investment adviser representatives to register through the Financial Industry Regulatory Authority’s (FINRA’s) IARD (Investment Advisor Registration Depository) system. They must pass the North American Securities Administrators Association’s (NASAA’s) Series 65 examination (Uniform Investment Adviser Law), or the Series 7 examination (General Securities Representative) in combination with the Series 66 examination (Uniform Combined State Law).
How to Obtain a Stockbroker License in North Dakota
Stockbrokers in North Dakota must register with the state’s Securities Department through FINRA’s Central Registration Depository (CRD). All broker-dealer agents in North Dakota must pass either the Series 63, 65, or 66 exams in combination with the Series 6 or Series 7 exam, based on the specific investment vehicles in which they plan to deal.
How to Obtain a License to Sell Life Insurance and Fixed Annuities in North Dakota
North Dakota residents who hope to become life insurance producers and who to deal in fixed annuities need to obtain a license through the North Dakota Insurance Department. Applicants must be residents of North Dakota and at least 18 years old. They must pass an exam for the life insurance line of authority, but pre-licensing education is not required in North Dakota. Pearson VUE administers the insurance examinations, each of which has two parts: one specific to North Dakota law and the other on general product knowledge. Tests are given in Fargo and Bismarck.
Licensed life insurance producers in North Dakota who wish to sell variable annuities must first seek securities licensure. This involves taking either the Series 6 or Series 7 exam. Producers who sell variable life and variable annuities must meet continuing education requirements of both the North Dakota Insurance Department and their governing SRO.
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