What Is the Series 79 Exam and Who Should Take It?
Discover the essentials of the Series 79 Exam, its purpose, eligibility criteria, and the steps to maintain your credentials in investment banking.
The Series 79 Exam is a critical assessment for professionals in the investment banking field. It measures the knowledge and skills required for advising on or facilitating debt or equity offerings. Understanding its importance helps candidates prepare effectively and align their career goals with industry standards.
Who Qualifies
The Series 79 Exam is designed for those pursuing careers in investment banking, particularly in securities offerings. Candidates must be sponsored by a Financial Industry Regulatory Authority (FINRA) member firm, which involves the firm filing a Form U4 (Uniform Application for Securities Industry Registration or Transfer) on their behalf. This ensures the candidate’s active participation in the financial services industry.
Typical candidates include investment banking analysts, associates, or professionals in related roles within financial institutions. These positions require expertise in financial markets, securities regulations, and transaction structuring. The exam evaluates these competencies, making it a valuable qualification for career growth. Candidates must be at least 18 years old and have a clean regulatory record. While no formal education is required, a strong background in finance, accounting, or economics is advantageous.
Registration Steps
To register for the Series 79 Exam, candidates must first obtain sponsorship from a FINRA member firm. The sponsoring firm files a Form U4 on the candidate’s behalf, detailing their professional background and qualifications. Accuracy in the form is essential to prevent delays.
Once the Form U4 is submitted, candidates must pay the $245 exam fee (as of 2024) through the FINRA website. Adhering to payment deadlines is critical to avoid scheduling issues.
Exam Day Details
On the day of the exam, candidates should arrive at the testing center 30 minutes early to complete check-in. A valid, government-issued photo ID, such as a passport or driver’s license, is required for identification. The exam is conducted on a computer at a FINRA-approved testing center, which provides a calculator and scratch paper.
Familiarity with the exam interface during the practice period before the test begins can help candidates stay focused on the material.
Scoring and Retake Policies
The Series 79 Exam includes 75 multiple-choice questions, and a passing score is 73%. Results are provided immediately upon completion. There is no penalty for incorrect answers, as scores are based solely on the number of correct responses. Candidates who do not pass must wait 30 days before retaking the exam, allowing time to review and improve in weaker areas.
Ongoing Credential Requirements
Maintaining the Series 79 credential requires compliance with FINRA’s Continuing Education (CE) requirements, which include the Regulatory Element and the Firm Element. The Regulatory Element must be completed within two years of registration and every three years thereafter, focusing on regulatory updates and compliance.
The Firm Element is customized to the needs of the employing firm, addressing topics relevant to its operations. This ensures representatives stay current with regulatory standards and possess the specialized knowledge required for their roles. Noncompliance with these requirements can result in suspension or termination of registration.