The Series 7 exam licenses the holder to advertise all varieties of securities products except for commodities and futures. Identified formally since the Commonplace Securities Marketing consultant Qualification Examination, the Series 7 exam and its licensing is administered in the course of the Financial Trade Regulatory Authority (FINRA).
Stockbrokers in america wish to transfer the Series 7 exam to obtain a license to business. The Series 7 exam makes a speciality of investment chance, taxation, equity, and debt equipment; packaged securities, possible choices, retirement plans, and interactions with clients for attainable securities business professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities business wisdom at the side of concepts basic to operating throughout the business.
The purpose of the Series 7 license is to set some extent of competency for a registered advisor or stockbroker to artwork throughout the securities business. The Series 7 license is an crucial requirement for an entry-level broker. The licensing exam covers an extensive range of financial words and topics along with securities laws.
Key Takeaways
- The Series 7 is an exam and license that entitles the holder to advertise all varieties of securities products except for commodities and futures.
- The Series 7 exam covers topics on investment chance, taxation, equity and debt equipment, packaged securities, possible choices, and retirement plans.
- The purpose of the Series 7 license is to determine some extent of competency for registered representatives throughout the securities business.
Candidates who transfer the Series 7 exam can business many securities, comparable to stocks, mutual funds, possible choices, municipal securities, and variable contracts. The Series 7 license does no longer duvet selling exact belongings or life insurance plans products. At the side of obtaining the Series 7 license, many states require that registered representatives transfer the Series 63 exam, additionally known as the Uniform Securities Agent State Law Exam.
Series 7 Prerequisites
Since Oct. 1, 2018, Series 7 candidates are required to transport the Securities Trade Prerequisites (SIE) exam along with the Series 7 exam so as to download the Commonplace Securities registration. Consistent with FINRA, the SIE is an introductory-level exam that “assesses a candidate’s knowledge of basic securities business wisdom at the side of concepts basic to operating throughout the business, comparable to varieties of products and their risks; the development of the securities business markets, regulatory corporations and their functions; and prohibited practices.” If you want to have additional information on the SIE, FINRA’s SIE exam content material subject matter outline provides additional details.
Candidates who want to take the Series 7 exam must be subsidized thru a FINRA member corporate or other applicable self-regulatory workforce (SRO) member corporate. The member corporate must file a Form U4 (Uniform Software for Securities Trade Registration or Transfer Form) for the candidate to be registered for the licensing exam. Non-FINRA people should use the Take a look at Enrollment Services and products and merchandise Tool (TESS) so as to check in for the exam. FINRA governs the movements of securities companies and registered brokers, ensuring that anybody who sells securities products is qualified and tested.
Candidates who want to take the Series 7 exam must be subsidized thru a FINRA member corporate or other applicable self-regulatory workforce (SRO) member corporate.
Series 7 Exam Development
The Series 7 is structured as follows:
- Seeks Business for the Broker-Dealer from Consumers and Potential Consumers: 9 questions
- Opens Accounts after Obtaining and Evaluating Consumers’ Financial Profile and Investment Goals: 11 questions
- Provides Consumers with Information about Investments, Makes Suitable Ideas, Transfers Property, and Maintains Appropriate Data: 91 questions
- Obtains and Verifies Consumers’ Gain and Product sales Instructions and Agreements; Processes, Completes, and Confirms Transactions: 14 questions
The Series 7 exam has 125 a couple of variety questions, lasts 225 minutes, and worth $300. The passing rating is 72%.
Prior to Oct. 1, 2018, the Series 7 exam contained 250 questions covering 5 number one activity functions. The exam period was once as soon as six hours, had no must haves, and worth $305. A rating of 72% was once as soon as required to transport.
FINRA does no longer provide candidates with any physically certificate as proof of exam completion. Provide or conceivable employers who want to view proof completion must get right of entry to this data by means of FINRA’s Central Registration Depository (CRD).
Final touch of the Series 7 exam is a prerequisite for a lot of various securities licenses, such since the Series 24, which permits the candidate to supervise and arrange broker movements.
