what is a registered representative rr 
a registered representative rr is a person who works for a client facing financial firm such as a brokerage company and serves as a representative for clients who are trading investment products and securities registered representatives may be employed as brokers financial advisors or portfolio managers registered representatives must pass licensing tests and are regulated by the financial industry regulatory authority finra and the securities and exchange commission sec rrs must furthermore adhere to the suitability standard an investment must meet the suitability requirements outlined in finra rule 2111 prior to being recommended by a firm to an investor 1 the following question must be answered affirmatively is this investment appropriate for my client understanding registered representatives rrs registered representatives can buy and sell securities for clients they are primarily known as transaction based service providers to carry out these transactions a registered representative must be licensed to sell the designated securities they must also be sponsored by a firm registered with finra to become licensed as a registered representative for a sponsoring firm a person must pass the series 7 and series 63 securities examinations these exams are administered by finra 2 the series 7 license allows the registered representative to buy and sell stocks mutual funds options municipal securities munis and certain variable contracts e g insurance or annuity products for their clients 3 since october 2018 series 7 candidates are required to pass the securities industry essentials sie exam as well as the series 7 in order to be registered as a general securities representative 4the series 63 license allows the representative to trade variable annuities and unit investment trusts a substantial portion of the series 63 exam is focused on state securities requirements across the u s other licenses may also apply for various other types of transactions 5 rrs may also obtain the series 65 and or series 66 licenses in order to expand their set of allowable activities 2the purpose of the series 7 license is to establish a standard level of competency and ethics for registered representatives in the securities industry 3standards for registered representativesinvestors seek registered representatives to carry out financial market transactions on their behalf as brokers or agents registered representatives typically have access to a full range of market trading capabilities that fit the needs of their investors they may also be able to execute thinly traded securities or have access to new securities launches registered representatives differ from registered investment advisors rias registered representatives are governed by suitability standards while registered investment advisors are governed by fiduciary standards 16 registered representatives are transaction based service providers u s regulators require that registered representatives ensure an investment is suitable for an investor given their investment profile they also ensure that trades are executed efficiently investors will incur sales charges determined by securities issuers when dealing with a registered representative registered investment advisors seek to offer more holistic financial plans and investing services they offer very different fee schedules and are typically fee based by assets under management registered investment advisors are regulated by fiduciary standards which go beyond standard suitability rias develop comprehensive financial plans and must ensure the best interest of the client rias are considered to be acting in a fiduciary capacity and so held to a higher standard of conduct than registered representatives this fiduciary standard mandates that an ria must always unconditionally put the client s best interests ahead of their own regardless of all other circumstances identifying a registered representativeinvestors seeking the services of a registered representative will find a range of options in the investment market companies like charles schwab offer discounts and full service brokerage services with charles schwab for instance an investor can place electronic trades at a discounted cost the discount brokerage service offers a registered representative call center where a client can speak with a broker to execute trades charles schwab also offers full service brokers who work as account executives for clients and support a broad range of trading activities finra also offers a service called brokercheck through brokercheck an investor can research the experience and disciplinary record of brokers and brokerage firms past activities that can disqualify youthere are several events that could either prevent a person from becoming a registered representative or that would result in the loss of membership or registration according to finra you could be subject to a statutory disqualification under the securities exchange act of 1934 if you meet a number of criteria the full specific list of criteria can be found on the sec s site a brief summary of those criteria includes events such as note that the preceding items are a brief summary of the disclosure questions included on finra form u 4 8 finra also provides a detailed summary of the statutory disqualification process 9