Do You Have to Take the SIE Before the Series 7?
Understand the essential sequence of FINRA exams required for a successful career in the securities industry.
To work in the securities industry, individuals must pass licensing exams administered by the Financial Industry Regulatory Authority (FINRA). These assessments ensure professionals possess the necessary knowledge for various financial roles.
The Securities Industry Essentials (SIE) Exam
The Securities Industry Essentials (SIE) Exam is an introductory assessment for those considering a financial services career. It covers broad, fundamental knowledge applicable across many industry functions, including basic capital markets, regulatory agencies, financial products and their risks, and prohibited practices.
The SIE Exam does not require sponsorship from a FINRA member firm, allowing anyone to take it. Passing the SIE demonstrates a baseline understanding of the industry, and results remain valid for four years.
The General Securities Representative (Series 7) Exam
The General Securities Representative (Series 7) Exam is a specialized qualification for a wide range of securities activities. Passing it allows professionals to solicit, purchase, and sell most general securities products, such as corporate stocks, bonds, municipal securities, options, and investment company products. The exam assesses knowledge of investment risk, equity and debt instruments, and various financial products.
Unlike the SIE, the Series 7 exam requires sponsorship from a FINRA member firm. This sponsorship indicates a firm supports the individual’s application to become a registered representative.
The Prerequisite Relationship: SIE and Series 7
The Securities Industry Essentials (SIE) Exam serves as a direct prerequisite for the General Securities Representative (Series 7) Exam. An individual must pass both the SIE and the Series 7 to become a fully registered General Securities Representative. This sequence was established by FINRA in October 2018 as part of a restructuring of its licensing framework.
This two-tiered structure ensures that candidates first grasp foundational securities industry concepts through the SIE. The Series 7 then builds upon this knowledge with more specific, product-oriented details relevant to a general securities representative role. While the SIE can be taken without firm sponsorship, candidates must pass it before they can be registered for and pass the Series 7. This means that even if a firm sponsors an individual for the Series 7, the SIE must be completed first to fulfill the registration requirements.
Registering for and Taking the Exams
The process for registering and taking these FINRA exams varies. For the SIE Exam, individuals can self-register directly through FINRA’s website. This involves creating a FINRA account, enrolling for the exam, and then scheduling an appointment at a Prometric testing center or, in some cases, online. The fee for the SIE Exam is $80.
In contrast, registration for the Series 7 Exam is facilitated by a sponsoring FINRA member firm. The firm initiates the process by filing a Uniform Application for Securities Industry Registration or Transfer (Form U4) through FINRA’s Central Registration Depository (CRD) system on behalf of the candidate. This filing grants the candidate a 120-day window to schedule and take the exam at a Prometric testing center. All candidates must present a valid, government-issued identification with a photo and signature upon arrival at the testing center, and personal items are generally stored in lockers.