Quick Answer: Series 65 for Attorneys
Attorneys, especially those in estate planning, elder law, and tax practice, can significantly expand their services by adding investment advisory capabilities through the Series 65.
- No sponsor required: Take the exam independently
- Study time: 50-70 hours (4-6 weeks for most attorneys)
- Your advantage: 30% of the exam covers regulations and fiduciary duty
- Practice expansion: Offer integrated wealth management alongside legal services
If you practice estate planning, elder law, tax law, or business law, you’ve likely seen firsthand how financial and legal planning intersect. Clients come to you for wills and trusts, but their real question is often “how do I protect and grow my wealth for my family?” The Series 65 exam gives you the credentials to answer that question comprehensively.
This guide covers why attorneys add investment advisory services, how your legal background helps with the exam, important ethics considerations at the intersection of legal and investment practice, and practical steps to expand your practice.
Why Attorneys Add Investment Advisory Services
The line between legal and financial planning has always been blurry. Estate planning clients need both trust documents and investment strategies. Divorce clients need asset division and ongoing financial guidance. Business clients need entity formation and retirement plan advice.
The Traditional Model: Referral Relationships
Most attorneys refer financial matters to outside advisors. While this maintains clear professional boundaries, it has drawbacks:
- Clients receive fragmented advice from multiple professionals
- Communication gaps between attorney and advisor can harm clients
- You lose touch with clients between legal matters
- Referral fees are limited by ethics rules in most jurisdictions
The Integrated Model: Attorney-Advisors
Attorneys who add investment advisory services can offer more cohesive client relationships:
Recurring Revenue
Advisory fees provide steady income between legal matters. Most RIA fees are asset-based (typically 0.5-1.5% annually) rather than hourly. Some advisors use wrap fee programs that bundle services.
Deeper Client Relationships
Regular investment reviews keep you connected to clients. You become their trusted advisor for all wealth matters.
Generational Connections
Managing family wealth creates relationships with children and grandchildren, expanding your client base organically.
Coordinated Planning
Estate plans and investment strategies work together. You can ensure trust funding, beneficiary designations, and asset allocation align.
Multi-disciplinary practice is growing. Major accounting firms offer legal services, and many law firms are exploring wealth management. Adding the Series 65 positions you for this evolving landscape.
Estate Planning Synergies
Estate planning is where legal and investment advisory services align most naturally. You’re already discussing wealth transfer, tax minimization, and long-term financial goals. The Series 65 allows you to complete the picture.
Integrated Service Opportunities
| Legal Service | Complementary Advisory Service |
|---|---|
| Revocable living trusts | Investment management within the trust; asset allocation aligned with trust purposes |
| Irrevocable life insurance trusts (ILITs) | Policy selection and premium financing strategies |
| Charitable trusts (CRTs, CLTs) | Investment management for charitable remainder interests; gift annuity analysis |
| Special needs trusts | Conservative investment management to preserve benefits eligibility |
| Business succession planning | Buy-sell funding strategies; retirement plan design |
| Retirement planning | IRA and 401(k) management; RMD strategies; Roth conversion analysis |
Your estate planning expertise creates natural synergies. Strengthen your knowledge with:
- Estate Planning Questions (2 questions) - Beneficiary rules, inherited accounts
- Retirement Plans Questions (3 questions) - IRA beneficiaries, RMDs, distributions
- Tax Considerations Questions (4 questions) - Estate tax, basis step-up, tax-efficient distributions
These topics directly support your estate planning client conversations.
Why Financial Advisors Partner With Attorneys
Understanding the other side of this relationship helps you see the opportunity. Financial advisors increasingly recognize that estate planning is essential to holistic wealth management. According to Kitces.com research, advisors who collaborate closely with attorneys produce better client outcomes and higher retention rates.
As an attorney-advisor, you don’t need to coordinate across firms. You provide the unified service that both attorneys and advisors struggle to offer separately.
Your Legal Training Transfers
Section IV (Laws & Regulations) is 30% of the exam and you already think in legal terms. CertFuel's Smart Study algorithm accelerates you through regulatory content and focuses your time on investment products and economic factors.
Access Free BetaStudy Approach for Attorneys
Your legal training gives you meaningful advantages on the Series 65, but there are areas that require focused attention. Here’s how to approach the exam strategically.
The Exam Structure
The Series 65 (Uniform Investment Adviser Law Examination) consists of 130 scored questions (plus 10 unscored pilot questions) with a 180-minute time limit. You need 71% (92/130) to pass.
Exam Content Breakdown
30% - Laws, Regulations, and Guidelines (~39 questions)
Securities regulations, fiduciary duty, ethics. Your advantage: Familiar territory for attorneys.
30% - Client Investment Recommendations and Strategies (~39 questions)
Portfolio management, client suitability, retirement planning. Mixed: Some overlap with estate practice. Study special accounts questions for trusts and type of client questions for HNW profiling.
25% - Investment Vehicle Characteristics (~32 questions)
Stocks, bonds, mutual funds, ETFs, options. Focus area: Requires dedicated study time.
15% - Economic Factors and Business Information (~20 questions)
GDP, inflation, monetary policy, financial statements. Focus area: May be new for most attorneys.
Your Strengths as an Attorney
- Regulatory interpretation: You read statutes and rules for a living. The Uniform Securities Act and Investment Advisers Act will feel familiar.
- Fiduciary concepts: You already understand fiduciary duty from attorney-client relationships. The investment adviser fiduciary standard has the same core principles.
- Test-taking skills: You passed the bar exam. The Series 65 is shorter, more focused, and multiple-choice only.
- Ethics training: Professional responsibility questions draw on concepts you learned in law school. Review the ethics and compliance topics that apply to investment advisers.
Areas Requiring Focus
Unless you have a finance background, plan to spend significant study time on:
Investment Products
Study investment vehicle characteristics including:
- Equity securities (common stock, preferred stock)
- Debt securities (municipal bonds, corporate bonds, yield calculations)
- Mutual funds and ETFs
- Options (calls, puts, basic strategies)
- Annuities and insurance products
Economic Concepts
- GDP, inflation, unemployment indicators - Monetary and fiscal policy - Business cycles - Interest rates and yield curves - Balance of trade
Portfolio Theory
- Modern Portfolio Theory basics - Risk measurement (standard deviation, beta) - Asset allocation strategies - Performance metrics (alpha, Sharpe ratio) - Diversification principles
Recommended Study Timeline
Most attorneys can prepare in 4-6 weeks with 10-15 hours per week. Here’s a suggested approach:
| Week | Focus Area | Hours |
|---|---|---|
| 1-2 | Investment products (securities, funds, options, annuities) | 20-25 |
| 3 | Economics and business indicators | 10-12 |
| 4 | Portfolio theory and client recommendations | 10-12 |
| 5 | Regulations, ethics, fiduciary duty (quick review) | 5-8 |
| 6 | Practice exams and weak area review | 10-15 |
Focus your study time efficiently by leveraging your legal background:
- Quick review: Fiduciary Obligations Questions (3 questions) - you understand duty of care and loyalty
- Quick review: Ethical Practices Questions (4 questions) - professional responsibility transfers
- Study deeply: Investment product questions (stocks, bonds, funds, options) - new material
- Master for clients: Estate Planning and Special Accounts - directly serve your high-net-worth practice
- Tax-advantaged accounts: Study 529 plans, Roth IRAs, and traditional IRAs for estate planning integration
This targeted approach reduces study time from 70 to 50-60 hours.
Aim to score consistently above 75% on practice exams before taking the real test. The last 20-25% of your study time should focus on practice questions to build speed and identify weak areas.
Ethics Considerations: Dual Fiduciary Duties
Operating at the intersection of legal practice and investment advisory creates unique ethical responsibilities. You’ll be subject to both state bar rules and securities regulations, and understanding how they interact is essential. Understanding fiduciary obligations questions and ethical practices questions prepares you for these dual standards. The ethics and fiduciary duty exam topics cover these professional standards in detail.
Two Fiduciary Standards
| Aspect | Attorney Fiduciary Duty | Investment Adviser Fiduciary Duty |
|---|---|---|
| Governing Authority | State bar rules; ABA Model Rules | Investment Advisers Act of 1940; SEC; NASAA (state securities regulators) |
| Core Duties | Competence, diligence, communication, loyalty | Duty of care, duty of loyalty, best interest standard |
| Conflicts Management | Informed consent with waiver option in many situations | Disclosure required; some conflicts cannot be waived |
| Confidentiality | Attorney-client privilege (evidentiary protection) | Confidentiality obligation (no privilege) |
| Fee Disclosure | Required; some jurisdictions require written fee agreements | Form ADV disclosure; written advisory agreement required |
ABA Model Rule 5.7: Law-Related Services
ABA Model Rule 5.7 addresses “law-related services” like financial planning and investment management. Under this rule:
- If the services are distinct from legal services and provided in circumstances that make clear they’re not legal services, the Rules of Professional Conduct may not apply to those services.
- If the services are provided in circumstances where the client reasonably might expect attorney-client protections, the Rules of Professional Conduct apply.
Most attorney-advisors find that clients view them as their attorney regardless of which hat they’re wearing. This means professional conduct rules typically apply to all client interactions. Plan your practice structure accordingly.
Conflicts of Interest
Dual practice creates potential conflicts that require careful management:
- Fee conflicts: Billing hourly for legal work while earning asset-based fees for advisory work creates different incentives. Transparency is essential.
- Principal transactions: Selling securities from your own account to clients requires specific disclosure and consent.
- Product recommendations: If you recommend products that generate higher fees (like variable annuities), you must disclose the conflict.
- Trust administration: If you draft a trust naming yourself as investment manager, you have a significant conflict that requires disclosure and possibly independent review.
- Churning: Excessive trading to generate fees is prohibited under both attorney ethics rules and securities regulations.
- Referral relationships: Referral fees or revenue-sharing arrangements with other advisors must comply with both bar rules and securities regulations.
Best Practices for Dual Practice
- Clear engagement letters: Specify which capacity you’re acting in for each service
- Separate agreements: Use distinct legal services agreements and advisory agreements
- Discretionary account authorization: If managing client investments, ensure proper written authorization for discretionary trading authority
- Comprehensive disclosure: Document all potential conflicts in both formats clients will understand
- Compliance support: Work with a compliance consultant who understands both legal ethics and securities regulations
- Malpractice coverage: Ensure your professional liability insurance covers both legal and advisory services
Expanding Your Practice: Structural Options
After passing the Series 65, you have several options for adding investment advisory services. Each has different implications for independence, compliance burden, and revenue potential.
Option 1: Affiliate with an Existing RIA (Most Common)
Join an established RIA as an Investment Adviser Representative while maintaining your law practice separately.
Advantages:
- RIA handles compliance, technology, and back-office
- Lower startup costs
- Established investment models and research
- Focus on client relationships, not operations
Considerations:
- Revenue split with RIA (typically 70-90% to you)
- Less control over investment philosophy
- Must follow RIA’s compliance policies
Option 2: Start Your Own RIA
Form and register your own Registered Investment Adviser firm, operating it alongside or integrated with your law practice. See the detailed guide on starting an RIA firm for structuring considerations.
Advantages:
- Full control over investment philosophy and fees
- Keep 100% of advisory revenue
- Build equity in a saleable business
- Customize compliance to your practice
Considerations:
Option 3: Hybrid RIA Platform
Use a hybrid RIA that provides turnkey infrastructure while allowing you to operate under your own brand.
Advantages:
- Compliance support without full RIA burden
- Maintain your firm’s brand identity
- Access to institutional investment products
- Faster time to market
Considerations:
- Platform fees (basis points on AUM)
- Some constraints on investment choices
- Less customization than independent RIA
Revenue Potential
Investment advisory fees typically run 0.5% to 1.5% of assets under management (AUM) annually. For context:
| AUM | Annual Fee (1%) | Monthly Revenue |
|---|---|---|
| $5 million | $50,000 | $4,167 |
| $10 million | $100,000 | $8,333 |
| $25 million | $250,000 | $20,833 |
| $50 million | $500,000 | $41,667 |
Estate planning clients often have significant assets. Converting a portion of your existing client base to advisory relationships can generate substantial recurring revenue.
Getting Started: Your Path Forward
Here’s a practical roadmap for attorneys looking to add investment advisory services:
Pass the Series 65 Exam
Register through FINRA using Form U10. No sponsorship required. Exam fee is $187. Plan for 4-6 weeks of study. See the registration guide for detailed steps.
Choose Your Structure
Decide whether to affiliate with an existing RIA, start your own, or use a hybrid platform. Consider your time availability, capital, and desired level of control.
Handle Registration and Compliance
File Form U4 with your chosen RIA (or Form ADV if starting your own). Establish written supervisory procedures and a code of ethics. Review the registration requirements before this step.
Update Your Malpractice Coverage
Ensure your professional liability insurance covers investment advisory activities. You may need a separate E&O policy for advisory services.
Develop Client Materials
Create advisory agreements, fee schedules, and service descriptions. Prepare to explain the value of integrated legal and financial services.
Launch and Market
Start with existing clients who trust you. Estate planning clients are natural candidates for investment advisory services. Build from there.
Before launching, review your state bar’s ethics opinions on attorneys providing ancillary services. Some states have specific guidance on multi-disciplinary practice. When in doubt, seek an informal ethics opinion from your state bar.