Registered Representative (RR): Definition, Job Description, Pay

A registered representative (RR) is a licensed financial professional who is authorized to buy and sell securities and other investment products on behalf of clients. RRs typically work for broker-dealers, brokerage firms, or other client-facing financial organizations and may be called brokers, financial advisors, or account executives depending on their role.

Key takeaways

• RRs execute client transactions in the securities markets and provide transaction-based advice.
• They must be licensed and sponsored by a FINRA-registered firm and follow rules from FINRA and the SEC.
• Registered representatives are held to a suitability standard (FINRA Rule 2111); registered investment advisers (RIAs) are held to a stricter fiduciary standard.
• Common licensing requirements include the Securities Industry Essentials (SIE) exam plus the Series 7 and Series 63; additional licenses (Series 65/66) expand permissible activities.

What RRs do

• Execute buy and sell orders for stocks, bonds, mutual funds, options, municipal securities, variable annuities, and other products for clients.
• Advise clients on investment choices that meet their risk profile, goals, and other suitability factors.
• Facilitate access to market offerings, including less-liquid securities or new issues, and handle trade execution and transaction paperwork.
• May provide client account servicing, trade recommendations, and basic portfolio management depending on firm role and licensing.

Licensing and registration

To act as an RR, a candidate must:
1. Be sponsored by a brokerage firm registered with FINRA.
2. Pass the SIE exam (a baseline knowledge test) and the FINRA Series 7 exam to become a General Securities Representative.
3. Often pass the Series 63 (state law) exam; additional exams (Series 65 or 66) allow expanded advisory activities.

The Series 7 permits trading a broad set of securities; the Series 63 focuses on state securities regulations. Firms also register and supervise their representatives under FINRA and SEC rules.

Standards and regulation

• Oversight: FINRA and the SEC regulate RRs and their firms.
• Suitability: RRs must ensure recommended investments are suitable for each client’s financial situation and objectives (FINRA Rule 2111).
• Fiduciary distinction: Unlike RIAs, RRs are not generally held to a universal fiduciary duty; RIAs must act in the client’s best interest and typically follow a fee-based fiduciary model. Ongoing regulatory debate concerns aligning standards across broker-dealers and RIAs.

How to find or verify an RR

• Large brokerages offer a mix of discount and full-service options; some provide access to RRs for trade execution or advisory services.
• Use FINRA’s BrokerCheck to review a broker’s employment history, licenses, and disciplinary record before engaging services.

Disqualification and conduct issues

Certain past activities can disqualify or bar someone from being or remaining an RR. Examples include:
* Certain criminal convictions (serious felonies permanently; some misdemeanors for a set period).
Judicial injunctions related to unlawful securities activity.
Expulsions, bars, or suspensions by self-regulatory organizations or regulatory agencies (SEC, CFTC).
Denials or revocations of registration, final orders barring association for fraud or misconduct, or findings of willful securities-law violations or failure to supervise.
False statements or omissions on registration forms (e.g., Form U4).

FINRA provides procedures and guidance on statutory disqualification and eligibility.

Compensation

Compensation varies widely by geography, firm type, client base, experience, and whether pay is commission-, salary-, or fee-based. Reported U.S. averages from multiple employment-data sources typically fall in the mid-five-figure range, with broad ranges reported (roughly $29,000–$117,000 or more) depending on role and location. Senior brokers or those with large books of business can earn substantially higher total compensation through commissions, fees, and bonuses.

Securities RRs can sell

A General Securities Representative may sell:
* Corporate and municipal securities
Investment company securities (mutual funds, ETFs)
Options and certain derivatives
Variable annuities and certain insurance-related products
Government securities

Other FINRA exams allow narrow qualifications (e.g., municipal-bond–only licenses).

Becoming a registered representative — summary steps

1. Obtain sponsorship from a FINRA-registered brokerage firm.
2. Pass the SIE exam and the Series 7 exam (and typically Series 63).
3. Complete firm onboarding, registration, and any additional product-specific exams required by the employer.
4. Maintain continuing education and comply with supervision and regulatory obligations.

Bottom line

A registered representative is a licensed broker who executes securities transactions and provides investment recommendations under FINRA and SEC oversight. RRs play a central role in retail and institutional markets, but they are governed by a suitability standard rather than the fiduciary standard that applies to registered investment advisers. Compensation and responsibilities vary by firm, licensing, and client needs.