A financial advisor is someone who provides guidance and investment analysis to help you pursue your financial objectives. Financial advisors can assist you with planning for short- and long-term goals, such as buying a home, paying for your children’s education, and saving for retirement. They can also help you determine how much to invest and how to select investment options designed to help you achieve those goals.

The Financial Industry Regulatory Authority (FINRA) formally defines financial advisor as a generic term that usually refers to a broker or registered representative. A registered representative (RR) is a financial professional who is able to deal with client transactions in the securities markets. RRs must pass strict licensing requirements, which may include the Series 6 or 7 exams, and must follow rules set out by FINRA and the SEC.

In addition, our financial advisors at Wilmington Advisors @ M&T are also Investment Advisor Representatives and have passed qualifying exams such as Series 63 and/or 65, which includes but is not limited to the study of economic factors, investment vehicle characteristics, client investment recommendations and strategies, and laws and regulations. 

Like many investors, you may not have the time, skill, or knowledge to research securities and build, as well as monitor, your portfolio. Financial advisors can help by not only understanding the many facets of investing and the vehicles available, but also by getting to know you, understanding your specific situation, and helping tailor a strategy that is appropriate for you.

A registered investment adviser is a firm that is registered with either the U.S. Securities and Exchange Commission (SEC) or a state securities regulator and provides advice and analysis about securities to its clients for compensation. By registering, investment advisers commit to the fiduciary responsibility of acting in their clients’ best interest. 

Whether investment advisers register with the SEC or in the states where they practice depends mostly on how much money they manage. The SEC regulates investment advisers that reach a certain threshold in the amount of client money they manage. State securities regulators have jurisdiction over advisers that do not qualify for SEC registration.

Registration with the SEC does not imply a certain level of skill or training.

A certified financial planner (CFP) is an advisor who specializes in comprehensive planning to help you achieve long-term goals. CFP professionals can provide retirement, investment, tax, debt reduction, and estate planning, as well as planning for business owners.

While the CFP certification is not a government designation, it is managed by the Certified Financial Planner Board of Standards, Inc., a non-profit organization. To achieve the CFP designation, candidates must meet rigorous requirements regarding education, coursework and examination, professional experience, and ethical standards.