How Long Is the Series 7 License Good For?
Learn the duration of your Series 7 license, ongoing maintenance requirements, and what to do if your registration becomes inactive.
The Series 7 license is a qualification for individuals seeking to become general securities representatives. Administered by the Financial Industry Regulatory Authority (FINRA), it demonstrates a professional’s competency to buy and sell a broad range of securities products. Passing this exam is a common requirement for those starting careers in the financial industry, enabling them to solicit, purchase, and sell various securities like corporate stocks, municipal bonds, mutual funds, and options.
Understanding Series 7 Validity
The Series 7 registration does not have a traditional “expiration date.” Instead, its validity is directly tied to an individual’s association with a FINRA member firm. As long as a person is actively registered with a FINRA member firm, their Series 7 license remains active.
A key concept governing its validity is FINRA Rule 1210, often referred to as the “two-year rule.” This rule stipulates that if an individual is not associated with a FINRA member firm for two consecutive years, their Series 7 registration becomes inactive. This two-year period begins from the date of termination with a firm, as reported on Form U5 (Uniform Termination Notice for Securities Industry Registration). The rule applies to all representative-level registrations.
Keeping Your Series 7 Active
Maintaining an active Series 7 registration while associated with a FINRA member firm involves ongoing Continuing Education (CE) requirements. These requirements ensure that registered individuals stay informed about industry regulations, ethical standards, and market developments. The CE program consists of two primary components: the Regulatory Element and the Firm Element.
The Regulatory Element focuses on updates to securities laws, FINRA rules, and other regulatory developments. Since January 1, 2023, registered individuals are required to complete this component annually by December 31. This annual training is specific to each registration an individual holds, with content developed by FINRA to cover essential compliance and sales practice standards.
The Firm Element, mandated by FINRA Rule 1240, requires firms to provide their own continuing education tailored to their specific business model and risk profile. This training covers topics relevant to the firm’s products, services, and compliance risks, and firms must administer it annually based on a needs analysis. Firms are responsible for maintaining records of training completion, including dates and topics covered, to demonstrate compliance during regulatory reviews.
What Happens If Your Registration Lapses
If a Series 7 registration becomes inactive, either due to disassociation from a FINRA member firm for two years or failure to complete Continuing Education requirements, specific consequences arise. An individual with an inactive registration is prohibited from engaging in any activities that require the Series 7 license. This means they cannot execute trades, provide investment advice, or be compensated for activities requiring a securities registration.
While the license is inactive, the individual’s qualification status is still on record with FINRA, but it is not considered “active” for practice. If the registration remains CE inactive for two consecutive years, it will be administratively terminated. This inactive status prevents individuals from performing their licensed duties, potentially impacting their career progression in the securities industry.
Restoring Your Series 7 Registration
To reactivate an inactive Series 7 registration, the necessary steps depend on the reason for the lapse. If the registration became inactive because an individual was not associated with a FINRA member firm for more than two years, the primary method for restoration is to re-take and pass the Series 7 exam. If applicable, the Securities Industry Essentials (SIE) exam may also need to be retaken, though the SIE remains valid for four years.
If the lapse was due to a deficiency in Continuing Education, particularly the Regulatory Element, the individual must complete the overdue modules. Individuals can access their Regulatory Element requirements through their FinPro account. Completing the required CE modules will typically reactivate the registration, allowing the individual to resume licensed activities.