Wednesday, July 18, 2018

FINRA Registration Exam Changes

FINRA has released details of a major revision to their securities registration exams. If you are a financial professional considering adding securities to your product offerings in 2018, it is important to know more about these changes so you can take into account the new exam sequence that takes effect on October 1, 2018.

As of that date, financial professionals will begin their exam sequence with the new Securities Industry Essentials (SIE) exam, and then proceed to take newly revised versions of the representative-level qualification exams. The changes are intended to reduce duplicative testing of general knowledge when taking exams to register in multiple categories, and to make it easier for individuals to enter the securities industry.[1]

Traditionally, to become securities-registered an individual would have to be affiliated with a broker/dealer for sponsorship. Under the new program, the test is going to be separated into two exams. The first test, the SIE, is open to anyone age 18 and older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers. Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm. The SIE contains 75 questions and the results are valid for four years.

After completing the SIE, a qualification exam for the appropriate type of business the individual will engage in is required. The individual must be associated with a member firm at that time to take the new equivalent of the Series 6, which is 50 additional questions, or the Series 7, which is 150 questions, among other test options.

These changes are important if you are considering obtaining your securities registration, because the current Series 6 is 100 questions while the current Series 7 is 250 questions, without the requirement to take the SIE. Individuals who apply for registration as a representative prior to September 30, 2018, will be required to pass the current representative-level exam appropriate to that registration category, not the revised version. In addition, such individuals will not be required to pass the SIE in order to register as a representative.[2]

If you would like to discuss how obtaining your securities license can benefit your business, please call.

Ann Arbor Annuity Exchange

[1] “Exam Restructuring”. FINRA. Web. Accessed 11 Apr 2018 at
[2] See note 1

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