Series 7/SIE Exam Preparation
The Securities Industry Essentials (SIE) exam and the Series 7 exam are tests offered by FINRA, the Financial Industry Regulatory Authority. Candidates must pass the Securities Industry Essentials (SIE) exam and the Series 7 exam to obtain the General Securities Representative registration. For more information about the SIE and Series 7 exams, refer to FINRA Rule 1210 and FINRA Rule 1220(b)(2).
The SIE Exam
According to FINRA, the SIE is an exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices. The SIE Exam is corequisite to the Series 7 exam.
The SIE is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to prospective employers. Association with a firm is not required to take the SIE, and results are valid for four years.
Passing the SIE alone does not qualify an individual for registration with a FINRA member firm or to engage in securities business. In order to become registered to engage in securities business, an individual must pass the SIE and a qualification exam appropriate for the type of business the individual will engage in. The individual must be associated with a member firm to take a qualification exam.
The Series 7 Exam
Purpose of the Series 7 Exam
The Series 7 exam assesses the competency of an entry-level registered representative to perform their job as a general securities representative. The test will measure the degree to which each candidate possesses the knowledge needed to perform the critical functions of a general securities representative, including:
- Sales of corporate securities
- Municipal securities
- Investment company securities
- Variable annuities
- Direct participation programs
- Options and government securities
Structure of the Series 7 Exam
Candidates will have 3 hours and 45 minutes to complete the exam digitally. The exam consists of 135 multiple-choice questions (125 scored and 10 unscored) that measure each of the four major functions below:
Learn more about the Series 7 Exam here.
|Description||Percentage of Exam Items||Number of Questions|
|Seeks Business for the Broker-Dealer from
Customers and Potential Customers
|Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives||9%||11|
|Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records||73%||91|
|Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes and Confirms Transactions||11%||14|
Series 7/SIE Exam Registration
Individuals must register with FINRA before taking a qualification exam. There are two options for taking the exams: either in a Prometric test center or remotely via online delivery. For specific details regarding registration and system requirements, please click here.
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