Who Needs the SIE Exam?
If you want to get a job in the Financial Services Industry let me stress this….the first Exam you need to pass is the SIE Exam this is the exam that opens the door:
This is an entry-level exam for people looking to get a job in the finance industry. You can take the SIE Exam without being sponsored by a FINRA member firm. It is highly recommend that you pass the FINRA SIE Exam before applying for any position in the financial services industry!
Without having passed the SIE Exams first before applying for a job, may lead firms who are hiring, to conclude that you are not serious about entering the Industry and may not take your application seriously.
The material you learn for the SIE Exam will be tested repeatedly on future qualifying exams you will be taking.
What are all these Exams?
Before you can transact any licensed activities in the finance industry, you need to complete your license – the SIE Exam is only the first part.
Much of the material you learned in taking the SIE exam will again be tested on the other Top-Off Exams so there is some duplication in the material you will be learning for each of the exams.
In order to take any of the top off exams listed above you need to be sponsored by a “member firm”.
Each Top-Off Exam is for a specific area of the financial services industry make sure you are taking the exam which reflects your interests and job opportunities.
Let’s go through the different exams and what they are for:
Series 6: Investment Company Representative (IR)
The Series 6 is a securities license allows the holder to register as a company’s representative and sell certain types of mutual funds, variable annuities, and insurance. Holders of the Series 6 license are not authorized to sell corporate or municipal securities, direct participation programs, and options. With Series 6, an individual can only purchase or sell certain types of mutual funds, variable life insurance, municipal fund securities, variable annuities, and unit investment trusts.
Often this exam is required to go to work for an insurance company along with the state required insurance exams. It should be noted that the series 6 exam does not allow the holder to sell ETF’s, to do that they need to have passed the series 7 Exam and be registered as a General Securities representative.
Most people with a Series 6 end up also passing the Life and Health Exam Which is a State exam. This broadens the types of insurance they are able to sell. Passing the Life and Health exam and working with a insurance Agent may allow you to sell life insurance, accident and health insurance, annuities, long-term care insurance, and medicare supplement insurance.
Here is a link to the get the FINRA outline for the Series 6 Exam and 4 sample Audio Lessons
Here is a link to our audio lessons for the Life Health Exam
Here is a link If you want to listen to 5 free audio lessons for the Life Health Insurance Exam
Series 7: General Securities Representative (GS)
The Series 7 Exam is the most common exam you will be required to pass if you are serious about making a career in the Financial Services Industry
Passing the Series 7 Top-Off Exam allows you the ability to sell almost all major consumer security types, including common and preferred stocks, call and put options, bonds, and other individual fixed income investments. It also gives you the ability to sell all of the packaged products except for those that also require a Life and Health Insurance license to sell.
The products that Series 7 licensees are not authorized to sell are, commodities futures, real estate and life insurance – all three of which require an additional license.
Here is a link to our Audio Lessons for the Series 7 Exam
Series 22: DPP Representative (DR)
The Direct Participation Programs Limited Representative Exam (DR) — assesses the competency of an entry-level registered representative to perform their job as a direct participation programs representative.
Series 22 Top-Off Exam allows you the opportunity to work with and sell direct participation program (DPP) products. A DPP is a non-traded pooled investment that is usually either in real estate or energy limited partnership interest that is over a long time frame in nature. They allow retail investors to invest in big, cash-intensive investment projects like a real estate or energy venture without having to commit substantial capital.
Here is a Link For more information about Series 22 exam Lessons Exam Lessons
Series 57: Securities Trader (TD)
The Series 57 exam — the Securities Trader Representative Exam — assesses the competency of an entry-level registered representative to perform their job as a securities trader representative. Including executing transactions in equity, preferred or convertible debt securities effected otherwise than on a securities exchange (proprietary trading).
Passing the Series 57 Top-Off Exam presents you the opportunity to trade equity and debt securities as a Securities Trader Representative. With this license, you can do NASDAQ trading, over-the-counter (OTC) equity trading, and proprietary trading. The roles commonly associated with the Series 57 are Equity Trader, Fixed Income Trader, Foreign Exchange (Forex) Trader, Commodities Trader, or Derivatives Trader. Here’s a short summary of each:
Equity Traders work with publicly listed stocks and shares, often for an Asset Management firm.
Fixed Income Traders work with bonds, government securities, or fixed income assets. Their scope also expanded to riskier products like collateralized debt obligations, which were a key piece of the 2008 financial crisis.
Foreign Exchange (Forex) Traders work with foreign currencies and generally try to make money from fluctuations in currencies related to economic opportunity, politics, and events.
Commodities Traders work with commodities like gold, iron, crude oil, soybeans, et-cetera.
Derivatives Traders work with options, futures, and other leveraged products. This is the riskiest work, as the leveraged bets have low capital requirements and high potential for upside or downside.
Here is a link to the outline for the Series 57
https://www.finra.org/sites/default/files/Series_57_Content_Outline.pdf
Series 79: Investment Banking Representative (IB)
The Series 79 exam — the Investment Banking Representative Exam — The Series 79 exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of an investment banking representative, including advising on or facilitating debt or equity securities offerings through a private placement or a public offering and mergers and acquisitions.
Passing the Series 79 Top-Off Exam gives you the ability to work in investment banking, a highly lucrative and also extremely competitive field. Investment banking at the entry level is roughly comprised of two areas: Debt or Equity Offerings, and Mergers & Acquisitions and Restructuring.
Some areas you may work in include:
Debt or Equity Offerings
Mergers & Acquisitions and Restructuring
The Series 79 Exam is the second most popular top-off exam due to the size and turnover in the investment banking industry. Be aware that investment banking is notorious for both the incredible earning potential (new college graduates often earn six figures in major cities) and rigorous hours (sometimes over 80-100 hours per week.
Here is a link to Audio lessons for the Series 79 Exam
An outline for the Series 79 Exam link is below:
https://www.finra.org/sites/default/files/Series_79_Content_Outline.pdf
Series 82: Private Securities Offerings Representative (PR)
The Series 82 is a license gives financial professionals who represent a sponsor organization the ability to transact private securities for clients.
Series 82 is a exam is focused on private securities transactions. It came about as a result of the Gramm-Leach-Bliley Act of 1999.
“In 2001, the Securities and Exchange Commission (SEC) affected rules that separated the Series 82 transactional abilities from under the umbrella of the Series 7 and the Series 62. The Gramm-Leach-Bliley Act repealed and revised many of the legislations from the Glass Steagall Act, which broadened the service capabilities for commercial banks. As a result, commercial banks could offer a more diverse set of services and could more easily partner with broker-dealers to provide securities transactions to customers. The Series 82 was created from this movement and established an individual license focused just on the transactions of private securities by registered representatives.” https://www.investopedia.com/terms/s/series-82.asp
The Series 82 Exam gives you the ability to facilitate private securities transactions on behalf of your sponsor organization.While most of the securities trading is there is an opaque market for private securities that has become more prominent with the rise of startups that often stay private longer and at higher valuations.
Outline for the Series 82 exam
https://www.finra.org/sites/default/files/Series_82_Content_Outline.pdf
Series 86 and 87: Research Analyst (RS)
“The Series 86 and 87 exams — the Research Analyst Exams — assess the competency of an entry-level registered representative to perform their job as a research analyst.
The Series 86 and 87 exams measure the degree to which each candidate possesses the knowledge needed to perform the critical functions of a research analyst, including preparation of written or electronic communications that analyze equity securities and/or companies and industry sectors.
Candidates must pass the Securities Industry Essentials (SIE) exam and the Series 86 and 87 exams to obtain the Research Analyst registration. For more information about the SIE and Series 86 and 87 exams, refer to FINRA Rule 1210 and FINRA Rule 1220(b)(6).
A candidate who meets one of the following requirements is permitted to request an exemption from the Series 86 exam (Part I).
Passed both Level I and Level II of the Chartered Financial Analyst (CFA) Exam
Passed both Level I and Level II of the Chartered Market Technician (CMT) Certification Exam
For additional information on the Series 86 exemption, see FINRA 1220(b)(6)(B) Qualifications.”
https://www.finra.org/registration-exams-ce/qualification-exams/series86-87
Outline for Series 86-87
https://www.finra.org/sites/default/files/Series_86-87_Content_Outline.pdf
Series 99: Operations Professional (OS)
“The Series 99 exam — the Operations Professional Exam — assesses the competency of an entry-level registered representative to perform their job as an operations professional.
The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of an operations professional, including customer onboarding; financial control; receipt and delivery of securities and funds and account transfers; and collection, maintenance, reinvestment and disbursements of funds.” https://www.finra.org/registration-exams-ce/qualification-exams/series99
Passing the Series 99 Top-Off Exam gives allows you the ability to oversee and supervise brokerage operations including the day-to-day operations such as transactions processing, procedures, and handling any applicable regulations. You are to make sure your firm is running smoothly and probably the biggest responsibility is making sure your firm is not breaking any laws!
Outline for series 99 exam.
https://www.finra.org/sites/default/files/Series_99_Content_Outline.pdf