What Are the Finance Exams Series and Who Needs Them?

Financial professionals need specific licenses to sell investments, provide advice, or operate in certain roles. These licenses are obtained by passing exams administered by FINRA and other regulatory bodies. Each exam qualifies individuals for different responsibilities within the industry, ensuring they meet legal and ethical standards.

Understanding which exam is necessary depends on the type of financial services a person wants to offer. Some focus on securities trading, while others cover investment advising or compliance.

Series 6 for Mutual Funds

The Series 6 exam qualifies individuals to sell mutual funds, variable annuities, and unit investment trusts (UITs). Officially called the Investment Company and Variable Contracts Products Representative Qualification Examination, it is administered by FINRA. Passing this exam allows professionals to work with packaged investment products but does not permit trading individual stocks or bonds.

Candidates must be sponsored by a FINRA-member firm, such as a brokerage or insurance company, to take the exam. It consists of 50 multiple-choice questions, with a 90-minute time limit and a passing score of 70%. The test covers investment product characteristics, securities regulations, and ethical sales practices.

A key focus is the regulatory framework surrounding mutual fund sales, including the Securities Act of 1933, which governs new securities offerings, and the Investment Company Act of 1940, which regulates mutual funds. Candidates must also understand FINRA’s suitability requirements, ensuring investment recommendations align with a client’s financial goals, risk tolerance, and time horizon.

Series 7 for General Securities

The Series 7 exam is required for individuals who want to trade a broad range of securities, including stocks, bonds, and options. Officially called the General Securities Representative Qualification Examination, it is one of the most comprehensive licensing exams in the financial industry.

The exam consists of 125 multiple-choice questions, with a 225-minute time limit and a passing score of 72%. It covers equity and debt instruments, margin trading, and risk management strategies. A significant portion focuses on executing client orders, such as market, limit, and stop orders, and understanding bid-ask spreads and liquidity. Candidates must also be familiar with margin requirements under Regulation T, which governs how much investors can borrow when purchasing securities on credit.

Beyond trading mechanics, the Series 7 emphasizes portfolio construction and asset allocation. Test-takers must assess an investor’s objectives and recommend appropriate securities based on risk tolerance, investment horizon, and income needs. The exam also covers options and structured products, requiring an understanding of time decay, implied volatility, and hedging strategies.

Regulatory compliance is another major component, covering anti-money laundering (AML) laws, insider trading restrictions under the Securities Exchange Act of 1934, and FINRA’s suitability standards. Candidates must understand the responsibilities of registered representatives, including disclosure requirements and handling customer complaints. Ethical considerations, such as conflicts of interest and fiduciary duties, are also tested.

Series 63 for State Compliance

The Series 63 exam is required for individuals conducting securities business at the state level. Officially called the Uniform Securities Agent State Law Examination, it is administered by the North American Securities Administrators Association (NASAA) in collaboration with FINRA.

The exam focuses on the Uniform Securities Act, a model law adopted by most U.S. states to regulate securities transactions and protect investors. Candidates must understand how state regulators enforce registration requirements for securities professionals and investment offerings, as well as exemptions from registration, such as private placements.

Ethical responsibilities are a key component, with topics covering fraudulent practices, prohibited activities, and fiduciary obligations. Candidates must recognize deceptive sales tactics, improper use of client funds, and conflicts of interest. Advertising restrictions and client disclosure requirements are also tested.

Series 65 for Fee-Based Advisers

The Series 65 exam is required for individuals who provide investment advice and manage client assets for a fee rather than earning commissions. Administered by NASAA, the exam qualifies individuals to operate as Investment Adviser Representatives (IARs), allowing them to offer financial planning, portfolio management, and wealth advisory services.

The exam covers economic and financial concepts essential for advising clients on asset allocation, risk management, and investment strategies. Candidates must understand modern portfolio theory (MPT), efficient market hypothesis (EMH), and behavioral finance principles. Tax considerations, including capital gains treatment, estate planning strategies, and tax-advantaged accounts, are also covered.

A core focus is the regulatory framework surrounding investment advisers, particularly the Investment Advisers Act of 1940, which sets standards for fee-based advisory services. Candidates must be familiar with Form ADV disclosure requirements, custody rules, and SEC fiduciary duty guidelines. Ethical considerations, such as avoiding conflicts of interest and maintaining transparency in fee structures, are tested extensively.

Series 66 for Combined Resources

The Series 66 exam combines elements of the Series 63 and Series 65, allowing individuals to provide investment advice and execute securities transactions. Administered by NASAA, it is designed for those who already hold a Series 7 license, eliminating the need to take the Series 63 and Series 65 separately.

The test consists of 100 multiple-choice questions, with a 150-minute time limit and a passing score of 73%. It covers investment vehicles, economic factors, and client suitability. Ethical considerations, including fiduciary responsibilities and conflicts of interest, are emphasized. The exam also assesses knowledge of state and federal regulations, particularly the Investment Advisers Act of 1940 and the Uniform Securities Act.

Candidates must understand fee-based and commission-based compensation structures while maintaining regulatory compliance. The exam also covers estate planning strategies, retirement account rules, and tax implications of different investment products.

Series 79 for Investment Banking

The Series 79 exam is required for professionals working in investment banking, particularly those advising on mergers and acquisitions, debt and equity offerings, and corporate restructuring. Administered by FINRA, it is officially called the Investment Banking Representative Qualification Examination.

The exam consists of 85 multiple-choice questions, with a 150-minute time limit and a passing score of 73%. It covers financial statement analysis, valuation methodologies, and deal structuring. Candidates must understand discounted cash flow (DCF) analysis, comparable company analysis, and precedent transaction comparisons. Capital structure considerations, such as the advantages and disadvantages of debt versus equity financing, are also tested.

Regulatory compliance is a major component, including SEC regulations governing public and private securities offerings. Candidates must understand Regulation D for private placements, Rule 144 for restricted securities, and registration requirements under the Securities Act of 1933. Ethical considerations, such as managing conflicts of interest and ensuring fair disclosure of material information, are also tested.

Series 82 for Private Placements

The Series 82 exam is for individuals who sell private placement securities, which are investment offerings not registered with the SEC and typically sold to accredited investors. Administered by FINRA, it is officially called the Private Securities Offerings Representative Qualification Examination.

The test consists of 50 multiple-choice questions, with a 90-minute time limit and a passing score of 70%. It covers private placement structuring, investor suitability requirements, and disclosure obligations under Regulation D. Candidates must understand Rule 506(b) and Rule 506(c) offerings, subscription agreements, offering memorandums, and investor risk disclosures.

Regulatory compliance topics include anti-fraud provisions under the Securities Exchange Act of 1934 and FINRA’s advertising and communication standards. Ethical considerations, such as avoiding misrepresentations and ensuring transparency, are emphasized.

Series 99 for Operations Roles

The Series 99 exam is for individuals handling operational and back-office functions within broker-dealers. Administered by FINRA, it is officially called the Operations Professional Qualification Examination.

The test consists of 50 multiple-choice questions, with a 90-minute time limit and a passing score of 68%. It covers trade clearance and settlement procedures, customer account maintenance, and regulatory reporting requirements. Candidates must understand brokerage account types, clearing firms, trade reconciliation, and SEC Rule 15c3-1 capital requirements.

Compliance and risk management topics include anti-money laundering (AML) procedures, cybersecurity protocols, and business continuity planning.

SIE for Entry-Level Knowledge

The Securities Industry Essentials (SIE) exam serves as an introductory qualification for individuals entering the securities industry. It does not require firm sponsorship and is a prerequisite for many other licensing exams, including the Series 6 and Series 7.

The test consists of 85 multiple-choice questions, with a 105-minute time limit and a passing score of 70%. It covers securities types, market structures, regulatory agencies, investment risks, and ethical considerations.