What Is the Assortment 26?
The Assortment 26 is an examination administered by the use of the Financial Trade Regulatory Authority (FINRA). Even supposing it is continuously simply referred to as the Assortment 26 exam, its entire establish is the Investment Company and Variable Contracts Products Fundamental Eam.
As its entire establish suggests, passing the Assortment 26 exam entitles candidates to check in as a limited idea answerable for supervising group of workers who advertise redeemable securities, comparable to mutual worth vary, variable insurance plans contracts, and other financial products as outlined inside the Investment Company Act of 1940.
Key Takeaways
- The Assortment 26 is a financial exam focusing on managers of product sales teams inside the financial sector.
- The ones managers are required to be sure that their product sales teams abide by the use of all applicable securities laws and laws.
- To head the exam, candidates should be sponsored by the use of a FINRA member corporate and should succeed in a score of 70% or higher.
How the Assortment 26 Works
The purpose of the Assortment 26 exam is to safeguard the investing public by the use of ensuring that new professionals overseeing the sale of redeemable securities are provided with a minimum of a minimal degree of knowledge and competence. In that sense, it is similar to the exams administered by the use of the CFA Institute for candidates in its Chartered Financial Analyst (CFA) program.
To be sure that the ones necessities are maintained, candidates for the Assortment 26 exam should first be sponsored by the use of a FINRA member corporate and should have already passed each the Investment Company and Variable Contracts Products Marketing consultant exam (known as the “Series 6”), or the Commonplace Securities Marketing consultant exam (known as the “Series 7”). In addition to, candidates should also have passed the Securities Trade Prerequisites exam (SIE).
The Assortment 26 exam consists of 110 questions. Candidates are given 2 hours and 45 minutes to jot down down the exam, which is done electronically. To head, candidates should answer a minimum of 70% of the questions accurately. Since there’s no penalty for guessing, candidates will have to ensure they attempt all questions on the check out.
Exact Global Example of the Assortment 26
The Assortment 26 covers a deliberately broad number of subject matter, even though the order of the questions are arranged to cover 3 primary topic areas. The main section relates to the regulate and record-keeping tasks of professionals who oversee financial product sales teams, while moreover testing candidates’ not unusual knowledge regarding the securities industry as a whole.
In the second and third sections, candidates are tested on their ability to navigate the compliance tasks of managers inside the industry, comparable to the specified processes for accurately coping with shoppers’ accounts, and the reasonably a large number of disclosures required when promoting and advertising securities to most of the people. Further broadly, this section accommodates questions regarding the ethical necessities required of professionals inside the field, comparable to simple navigate conflicts of hobby and simple divulge doable violations of securities laws and laws.
