How to become a financial advisor in California

Are you looking to use your skills to help people improve their financial position in life? Learn how to become a financial advisor and why this career might be right for you.

What does a financial advisor in California do?

A financial advisor in California is responsible for helping people develop financial habits and strategies to help them reach their financial goals. This can involve:

• Assessing a client's financial health
• Developing financial goals and a plan to achieve them
• Advising on strategies for taxes, investments, and insurance policies
• Monitoring accounts to help improve performance
• Educating clients on the importance of budgeting, saving, and investing

Bureau of Labor Statistics (BLS) data from 2023 shows that personal financial advisors earned a median annual salary of $99,580 in 2023.

Steps to become a financial advisor in California

Your path to a career as a financial advisor in California is likely to require a series of careful steps. Here are three actions you can take to get started.

Step 1: Obtain a degree

Though it isn't required, if you want to learn how to become a financial advisor in California, it's a good idea to get a bachelor's or master's degree. Degrees in finance, accounting, economics, mathematics, and business can be beneficial for gaining a strong knowledge of financial principles and the finance industry.

Step 2: Get hired for sponsorship

It's important that you get hired by a firm that is registered with the Financial Industry Regulatory Authority (FINRA). You'll need sponsorship from one of these firms in order to register for and take your licensing exams.

A FINRA-registered firm will likely submit any required paperwork on your behalf and may be able to provide you with additional education and practical hands-on experience in your field.

Step 3: Take your licensing exams

The California Department of Financial Protection and Innovation requires financial advisors to take the FINRA Series 65 Uniform Investment Adviser Law Examination. Alternatively, you may take the Series 7 General Securities Representative Examination and the Series 66 Uniform Combined State Law Examination.

Note that some individuals who have obtained certain certifications may be able to get a waiver for these exams, including:

• Chartered Financial Analyst
• Chartered Financial Consultant
• Certified Financial Planner
• Chartered Investment Counselor
• Personal Financial Specialist

You may also be required to periodically take continuing education courses to maintain your license.

Step 4: Get registered with California

The final step on your journey to becoming a financial adviser in California is to complete your registration with the state. You must fill out an application to apply for an investment adviser certificate with the Investment Adviser Registration Depository.

You will need to pay a $125 filing fee and renew your application each year to stay active in the system and have the authority to provide services to clients.

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