What Is the Assortment 6?
The Assortment 6 is a securities license entitling the holder to test in as a company’s marketing consultant and advertise sure sorts of mutual budget, variable securities, and insurance plans. Holders of the Assortment 6 license don’t seem to be approved to advertise corporate or municipal securities, direct participation ways, and alternatives.
With a Assortment 6, an financial professional must purchase or advertise sure sorts of mutual budget, variable lifestyles insurance plans, municipal fund securities, variable annuities, and unit investment trusts (UITs).
Key Takeaways
- The Assortment 6 is a securities license entitling the holder to test in as a company’s marketing consultant and advertise sure sorts of mutual budget, variable annuities, and insurance plans.
- Candidates must transfer the Assortment 6 exam to obtain a Assortment 6 license, and the Securities Trade Must haves (SIE) exam is a corequisite for the Assortment 6 exam.
- Candidates must be subsidized by way of a member of FINRA or a self-regulatory team (SRO) to take the exam.
- Assortment 6 checks were traditionally taken specifically individual at take a look at amenities, then again FINRA began offering them online in 2020.
- The most productive downside of a Assortment 6 license is that holders don’t seem to be approved to advertise change traded budget (ETFs).
Working out Assortment 6
The Assortment 6 is a license sought by way of execs throughout the financial services trade. Jobs the use of the Assortment 6 license include financial advisors, retirement plan experts, investment advisors, and private bankers. So as to obtain the Assortment 6 license, candidates must transfer the Investment Company/Variable Contracts Products Limited Marketing consultant (Assortment 6) exam. The Securities Trade Must haves (SIE) exam is a corequisite for the Assortment 6 exam. The SIE does no longer require corporate sponsorship.
The Financial Trade Regulatory Authority (FINRA) administers the Assortment 6 exam. It covers topics paying homage to mutual budget, variable annuities, securities, tax laws, retirement plans, and insurance plans products. A passing grade is finished by way of as it should be answering at least 35 of 50 questions within 90 minutes. 5 additional questions are unscored for an entire of 55 questions. The take a look at costs $40, and it is administered by the use of computer with out a reference matter subject matter allowed.
Candidates used to take the Assortment 6 exam specifically individual at Prometric take a look at amenities. However, FINRA began offering checks, along side the Assortment 6 exam, online in 2020. Prometric moreover administered the internet checks. However, candidates or their employers had to arrange specialized device on their laptop methods and provide cameras. Phrase, alternatively, {{that a}} Assortment 6 expires two years after employment till beneath explicit circumstances this sort of military deployment.
What Does the Assortment 6 Allow You to Do?
The FINRA Assortment 6 license allows an individual to act as a registered marketing consultant and advertise mutual budget, variable annuities, and unit investment trusts (UITs). A lot of these investment products are regarded as to be slightly simple and are eternally suitable for explicit individual consumers who are in search of a technique to diversify their portfolios or save for long-term financial goals paying homage to retirement.
Holding a Assortment 6 license does no longer allow an individual to advertise other sorts of securities, paying homage to stocks, bonds, and alternatives. If an individual needs to advertise a few of these securities, they could want to obtain a distinct securities license, such since the FINRA Assortment 7 license.
Individuals who hold a Assortment 6 license is also in charge of providing investment advice and proposals to clients, along with processing transactions and maintaining right kind knowledge of their movements, then again limited to the sorts of securities coated in this license. Assortment 6 licensees may art work for a brokerage corporate, monetary establishment, insurance plans company, or other financial established order, and can be required to persist with sure ethical and prison necessities right through their art work.
Assortment 6 vs. Assortment 7
The Assortment 6 exam is eternally compared to the Assortment 7 exam. The Assortment 6 costs significantly a lot much less money and has a shorter take a look at protecting a lot much less matter subject matter. However, a Assortment 6 license is all that some financial advisors, investment advisors, and retirement planners need. Such advisors may best desire a Assortment 6 license if they simply advertise insurance plans, annuities, and most probably sorts of mutual budget, no longer explicit individual stocks.
Assortment 6 holders, alternatively, don’t seem to be approved to advertise stocks, exchange-traded budget (ETFs), or bonds. It is a vital drawback because of ETFs maximum incessantly offer lower fees and are an increasing number of converting mutual budget as the preferred investment vehicles among retail consumers. Financial advisors and retirement planners who want to advertise ETFs must obtain a Assortment 7 license, which requires taking a longer and additional whole exam that costs more money.
In comparison to the Assortment 6, the Assortment 7 license is maximum incessantly regarded as to be additional whole and useful, and may open up additional task possible choices throughout the securities trade. However, the Assortment 6 license is also sufficient for some people who find themselves fascinated with selling mutual budget, variable annuities, and UITs and do not want to advertise other sorts of securities.
Must haves for Assortment 6
Candidates must be subsidized by way of a member of FINRA or a self-regulatory team (SRO) to take the exam. There is no prerequisite for the exam, then again the Securities Trade Must haves (SIE) exam is a corequisite for Assortment 6 (Faster than Oct. 2018, the exam used to be as soon as 100 questions and didn’t have the SIE corequisite. In this day and age the Assortment 6 exam contains 50 questions).
Upon receiving a passing grade, candidates must then take a look at in with FINRA via their sponsoring corporate as a way to transact approved securities. Holders of the Assortment 6 are regarded as limited representatives of their sponsoring corporate. As a limited marketing consultant, they can advertise sure sorts of mutual budget, variable annuities, and variable lifestyles insurance plans.
Assortment 6 Exam Sections
The exam has a 90-minute time limit and consists of 50 a few variety questions. The passign grade is 70%. As outlined by way of FINRA, the Assortment 6 exam covers 4 explicit sections.
- “Seeks Trade for the Broker-dealer from Customers and Possible Customers,” which is 12 questions—protecting 24% of the exam.
- “Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives” is 8 questions—protecting 16% of the exam.
- “Provides Customers with Knowledge About Investments, Makes Suitable Ideas, Transfers Assets, and Maintains Appropriate Knowledge” is a component the exam at 25 questions—protecting 50% of the exam.
- “Obtains and Verifies Customers’ Gain and Product sales Instructions; Processes, Completes, and Confirms Transactions” is 5 questions—protecting 10% of the exam.
Continuing Coaching
Licensees must fulfill continuing coaching must haves and acquire sponsorship from a FINRA registered company to stick their Assortment 6 licenses.
FINRA’s continuing coaching program incorporates two elements: a regulatory phase and an organization phase. On the regulatory aspect, FINRA requires licensees to complete a computer-based training session within 120 days of the second anniversary of registration. FINRA moreover requires a computer-based training session each 3 years after that. The corporate phase requires broker-dealers to establish and maintain a unbroken coaching program.
Is Assortment 6 or 7 Exam Harder?
The FINRA Assortment 7 exam is maximum incessantly regarded as to be more difficult than the Assortment 6 exam. The Assortment 7 exam covers a broader range of topics and requires a deeper working out of the securities trade and fiscal markets.
How So much Does the Assortment 6 Exam Worth?
As of 2022, the Assortment 6 exam costs $75.
How Long Is a Assortment 6 Excellent for?
The FINRA Assortment 6 license is respectable at some point of your employment with a FINRA member corporate, as long as you keep registered and in very good standing with FINRA. While you pass away the corporate or your registration lapses, your Assortment 6 license may not be respectable.
After two years, an individual who holds a Assortment 6 license must complete a certain number of continuing coaching (CE) credit score as a way to renew their license. The number of CE credit score required for renewal relies on the proper must haves of the state in which the individual is allowed. Typically, continuing coaching is had to make sure that registered representatives stay up-to-date on the latest tendencies throughout the securities trade and maintain their knowledge and talents. Completing CE credit score can also lend a hand other people maintain their professional licenses and stay in compliance with regulatory must haves.
The Bottom Line
The FINRA Assortment 6 is a securities license that allows an individual to act as a registered marketing consultant and advertise mutual budget, variable annuities, and unit investment trusts (UITs). To procure a Assortment 6 license, an individual must transfer the Assortment 6 examination, which is administered by way of the Financial Trade Regulatory Authority (FINRA). The Assortment 6 exam covers topics paying homage to sorts of securities, regulatory companies, and investment risks. It is typically taken by way of people who find themselves starting careers throughout the securities trade and who want to advertise a few of these investment products.
