In general, aspiring portfolio managers should plan on pursuing licensure or certification after school. However, certification requirements for portfolio managers vary from one state to the next, so be sure to check with your state’s financial regulator.
In addition, note that many licensing exams require candidates to have employer sponsorship. In other words, you will need to land a job with an investment firm or similar company before you can qualify to sit for those exams.
Portfolio management licenses are overseen by the Financial Industry Regulatory Authority (FINRA). Exactly which licensure examinations you need to take depends largely on your career goals and job responsibilities. For example, to trade brokered certificates of deposit (CDs), you would need to take the General Securities (Series 7) exam to qualify for registration.
There are a few ways to become registered while working as an investment manager. For some individuals, the SIE/Series 7 path is a wise choice as it can be taken prior to employment. Others may decide on an investment advisor representative (IAR) path and work at a registered investment advisory (RIA) firm. Others may have a designation that allows them to waive certain examination. In other cases, individuals may also be required to register with the Securities and Exchange Commission (SEC) as well as complete other registration or examination.
Each state has its own securities agency, and you will need to register with yours in order to practice as an investment manager. The process of registering varies from state to state. In general, however, you can expect to submit an application with supporting documentation, pay the application fee and undergo fingerprinting for a background check.
The CFA® charter is widely considered to be the gold standard among portfolio managers. Holding this designation may qualify an individual to pursue senior- or executive-level positions in asset management firms. In addition, many companies prefer that their employees hold this license.
However, you won’t be able to qualify to become a CFA Charterholder immediately upon graduating with your finance degree. Instead, you will need to acquire at least four years of full-time work experience and pass three CFA® examinations that cover topics such as corporate financing, portfolio management, economics and securities analysis. You will also need letters of reference.