Choosing a financial advisor isn’t just about personality and investment philosophy. It’s also about credentials. When advisory licenses aren’t renewed, it can signal issues that matter to you as an investor. Maybe an advisor is leaving the industry, or perhaps they’ve had compliance problems. Either way, understanding which advisory licenses have lapsed—and why—can help you make smarter choices with your money.
It’s easy to assume that all advisors are equally qualified, but that’s not always true. Some licenses require ongoing education and background checks. If those aren’t renewed, an advisor’s ability to act in your best interest might be compromised. This article breaks down seven key advisory licenses that often go unrenewed, and explains why that matters for your financial future.
1. Series 7 License
The Series 7 license is one of the most recognized advisory licenses in the financial industry. It allows advisors to sell a wide range of securities, including stocks, bonds, and mutual funds. If an advisor lets this license lapse, it’s a red flag. They can no longer legally recommend or sell many investment products.
Sometimes, advisors let their Series 7 expire because they’re moving into fee-only planning and no longer sell products. But it could also indicate disciplinary issues or a shift away from direct investment advice. Either way, if your advisor doesn’t renew their Series 7 license, ask for a clear explanation.
2. Series 65 License
The Series 65 is required for those acting as investment advisor representatives, giving advice for a fee. It’s a key advisory license for anyone offering financial planning or portfolio management. If this license isn’t renewed, your advisor may not be legally permitted to give advice on securities for compensation.
Some advisors let their Series 65 lapse if they retire or change careers. But if you see this license isn’t current, it’s important to ask why. It could impact your legal protections as a client and the advisor’s ability to act as a fiduciary.
3. Series 63 License
Most states require the Series 63 license for securities agents. It covers state laws and regulations and is often held alongside the Series 7. If an advisor doesn’t renew this license, they can’t legally transact business in many states.
This license sometimes lapses when advisors move into roles that don’t require client interaction. However, it can also be a sign of regulatory trouble or a shrinking practice. Always verify your advisor’s current licenses to ensure they’re authorized to work in your state.
4. Certified Financial Planner (CFP)
While not a government license, the CFP designation is a gold standard in the financial planning world. It requires ongoing education and ethics training. If an advisor’s CFP status lapses, it could mean they’re not keeping up with industry standards.
Some advisors let their CFP lapse due to the cost or time commitment. But you should know that a current CFP is more likely to be up to date on best practices and regulatory changes.
5. Chartered Financial Analyst (CFA)
The CFA credential is respected among investment professionals. Maintaining it requires annual dues and adherence to a strict code of ethics. If you notice an advisor’s CFA has lapsed, ask why. It could be a sign they’re no longer focused on investment analysis or portfolio management.
Some advisors keep their CFA active even if they don’t use it daily. Others let it go if they shift careers or don’t want to meet continuing requirements. Either way, a current CFA is a sign of commitment to investment excellence.
6. Insurance Licenses
Many advisors hold life or health insurance licenses to offer insurance products. These advisory licenses require regular renewal and continuing education. If an advisor lets their insurance license lapse, they can’t legally sell or advise on insurance policies.
This matters if you rely on your advisor for comprehensive planning. Gaps in insurance licensing could mean missed opportunities—or worse, inappropriate recommendations. Always check that your advisor’s insurance licenses are current if they’re advising on risk management.
7. Registered Investment Advisor (RIA) Registration
The RIA registration is essential for firms and individuals managing client assets for a fee. This advisory license involves ongoing reporting and compliance with the SEC or state regulators. If an advisor’s RIA registration isn’t renewed, they cannot legally manage investments for others.
Some advisors let their RIA registration lapse due to retirement, mergers, or compliance challenges. But a non-renewed RIA license should prompt questions about your advisor’s ability to manage your portfolio.
How Advisory Licenses Impact Your Financial Security
When you work with a financial advisor, you trust them with your goals and your future. Advisory licenses are more than just paperwork—they’re proof of ongoing education, regulatory oversight, and a commitment to ethical standards. If your advisor isn’t keeping their licenses current, it can affect the quality of advice you receive and your legal protections as a client.
Always ask your advisor about their active licenses and check them independently. If you see that important advisory licenses aren’t renewed, don’t be afraid to dig deeper. Your financial security depends on working with qualified, ethical professionals.
Have you ever checked your advisor’s licenses? What did you find, and did it change your confidence in them? Share your thoughts below!
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