How Hard Are the Series 9/10 Exams?

The Series 9/10 exams are significant hurdles for financial professionals aiming to supervise sales activities within the securities industry. Developed and administered by the Financial Industry Regulatory Authority (FINRA), these examinations gauge a candidate’s proficiency in the knowledge, skills, and abilities necessary for supervisory functions. Preparing for these exams involves understanding their structure, content, and rigorous demands.

Overview of the Series 9/10 Exams

The Series 9 (General Securities Sales Supervisor – Options) and Series 10 (General Securities Sales Supervisor – General) exams are regulatory qualifications for individuals seeking to supervise sales activities within a FINRA-member firm. Taken together, they certify an individual’s competency to oversee various aspects of a brokerage firm’s operations. Passing both parts allows an individual to function as a general securities sales supervisor, a role involving responsibilities such as approving customer accounts, training personnel, and maintaining records.

This license qualifies an individual to supervise sales activities related to a broad range of securities products. These include corporate and debt securities, investment company shares, mortgage-backed securities, direct participation programs, municipal securities, government securities, and options. The Series 9 and 10 exams are limited principal exams, qualifying individuals for sales supervision but not extending to areas like underwriting or trading.

Candidates must be associated with and sponsored by a FINRA member firm to be eligible for these principal-level exams. A prerequisite for both is successful completion of the Series 7 (General Securities Representative) exam. While the Series 7 qualifies individuals to sell various securities products, the Series 9/10 builds upon that foundation, focusing on supervisory aspects.

Exam Content and Format

The Series 9 and Series 10 exams are distinct yet complementary, assessing the full scope of a general securities sales supervisor’s duties. Both are computer-based multiple-choice examinations administered by FINRA. They include a small number of unidentified pretest items that do not count towards the candidate’s score. A passing score of 70% is required for both exams.

The Series 9 exam focuses on supervising options-related activities. It consists of 55 scored questions, plus 5 unscored pretest items, for a total of 60 questions. Candidates have 1 hour and 30 minutes to complete it. The content areas for the Series 9 exam are:
Supervise the Opening and Maintenance of Customer Options Accounts (approx. 18 questions): Covers option disclosure, agreements, account approval, and margin rules for options.
Supervise Sales Practices and General Options Trading Activities (approx. 19 questions): Includes reviewing customer complaints, overseeing trading error corrections, and managing daily trading activity.
Supervise Options Communications (approx. 5 questions): Involves reviewing retail, correspondence, and institutional communications related to options.
Supervise Associated Persons and Personnel Management Activities (approx. 13 questions): Covers personnel management and training specific to options.

The Series 10 exam, broader in scope, covers general securities sales supervision. It contains 145 scored questions, plus 10 unscored pretest items, totaling 155 questions. Candidates are given 3 hours and 50 minutes to complete it. The Series 10 exam features four major content areas:
Supervise Associated Persons and Personnel Management Activities (approx. 28 questions): Delves into hiring, registration requirements (like Forms U4, U5, U6), continuing education, outside business activities, and anti-money laundering (AML) compliance.
Supervise the Opening and Maintenance of Customer Accounts (approx. 49 questions): Involves managing the creation, approval, and handling of customer accounts.
Supervise Sales Practices and General Trading Activities (approx. 52 questions): Tests knowledge of supervising sales practices, general trading activities, and ensuring compliance.
Supervise Communications with the Public (approx. 16 questions): Covers regulations related to public communications and advertising.

Study Strategies and Resources

Effective preparation for the Series 9/10 exams requires a structured study approach. Candidates benefit from creating a detailed study schedule, reviewing material, and practicing questions. Consistent practice with question banks is recommended to reinforce learning and identify areas needing further attention. Utilizing mock exams is also beneficial for managing time and pinpointing weak subject areas.

Study materials from major providers like Kaplan, STC (Securities Training Corporation), and ExamFX are commonly used resources. These include comprehensive study manuals or textbooks, providing foundational knowledge. Many providers offer online question banks, allowing candidates to build custom practice tests and track progress. Some resources include live or on-demand video courses and flashcards, catering to different learning styles.

Study hours vary based on existing knowledge. For the Series 9 exam, candidates might spend 30-45 hours over 3-5 weeks. The Series 10 exam generally requires more time, with recommendations ranging from 70-80 hours over 6-8 weeks. A combined study time of 100-120 hours is often suggested.

The Examination Process

Candidates must navigate the practical steps of scheduling and taking the Series 9/10 exams. Scheduling for FINRA exams is done through Prometric, FINRA’s testing administrator.

On the day of the exam, candidates should arrive at the testing center with required identification. Strict security protocols are in place, including biometric scans and restrictions on personal belongings. Candidates are provided with a whiteboard or dry-erase markers and a basic electronic calculator, which must be returned. Personal items like cell phones, smartwatches, and study materials are not allowed in the testing area.

Upon completion, candidates receive their results immediately as a pass/fail notification on screen. A printed copy is also provided for test center deliveries. If a candidate does not pass, FINRA has a specific retake policy: after the first and second failed attempts, a candidate must wait 30 calendar days before retaking. If a candidate fails a third time or more, the waiting period increases to 180 calendar days. There is no limit to attempts, but each retake incurs an additional testing fee.