It is required that all NEW representatives take and pass the Securities Industry Essentials® (SIE®) Exam as a pre-requisite to taking the Series 6 Exam. The FINRA Series 6 is a corequisite exam that needs to be successfully completed in addition to the Series 63, 65, or 66 exam before a candidate can apply to register with a state. The Series 6 covers far less information than a tradional Series 7 License, however is useful to those who are planning to deal with a limited number of investment products, as furthered hereunder.
- Securities Industry Essentials® (SIE®) Exam
- Series 6 – Investment Company and Variable Contracts Products Representative
| Exam | Questions | Allotted Exam Time | Required To Pass |
|---|---|---|---|
| SIE | 75 Multiple-Choice Questions | 1 hour and 45 minutes | 70% |
| S6 | 50 Multiple-Choice Questions | 1 hour and 30 minutes | 70% |
| S7 | 125 Multiple-Choice Questions | 3 hours and 45 minutes | 72% |
Compared to the SIE exam questions, Series 6 questions are much more situational than definitional, and require a deeper knowledge of investment company and variable products. After passing the SIE and Series 6 Exams, representatives must also pass at least ONE of the following Securities Law Exams in order to be registered to conduct business in any State, and must be approved in their home state.
- Series 63 – Uniform Securities Agent State Law Exam
- Series 65 – Uniform Investment Adviser Law Exam
- Series 66 – Uniform Combined State Law Exam
** The Series 66 exam is the equivalent of taking both the Series 63 and Series 65 exams.
| Exam | Questions | Allotted Exam Time | Required To Pass |
|---|---|---|---|
| S63 | 60 Multiple-Choice Questions | 1 hour and 15 minutes | 72% |
| S66 | 100 Multiple-Choice Questions | 1 hour and 50 minutes | 73% |
| S65 | 130 Multiple-Choice Questions | 3 hours | 70% |
Candidates who passes the Series 6 exam (35/50 Correct Answers) are qualified for the solicitation, purchase and/or sale of the following securities products:
- mutual funds (closed-end funds on the initial offering only),
- variable annuities,
- variable life insurance,
- unit investment trusts (UITs), and
- municipal fund securities [e.g., 529 savings plans, local government investment pools (LGIPs)].
The Exam is structured and distributed into the following four major groups, which are further dissected throughout the course and its modules.
| Section | Description | Questions | Weight |
|---|---|---|---|
| 1 | Customers and Potential Customers | 12 | 24% |
| 2 | Financial Profile and Investment Objectives | 8 | 16% |
| 3 | Disclosure, Suitability, Assets, and Records | 25 | 50% |
| 4 | Transactions, Confirmations, Purchases, and Sales | 5 | 10% |
| Total | 50 | 100% |
The Series 6 Exam covers a limited range of investment products with respect to the Series 7 and mainly focuses on sales practices, industry regulations, and suitability. Understanding the different types of investment companies, retirement plans, and regulatory guidelines is also crucial as referenced below this course is covered in a span of several modules which is also available at fast/ slow paces - depending on your schedule.
A. Purpose and Structure of Series 6.
B. Overview of Financial Products Covered.
C. Regulatory Framework and Responsibilities.
A. Overview of Securities Markets.
B. Roles of Regulatory Agencies (SEC, FINRA).
C. Securities Exchange Act of 1934 and Investment Company Act of 1940.
A. Types of Investment Companies.
- Mutual Funds.
- Unit Investment Trusts (UITs).
- Closed-End Funds.
B. Characteristics and Features of Investment Products.
C. Investment Objectives and Risks.
A. Securities Act of 1933 and 1934.
B. Regulatory Requirements for Securities Offerings.
C. Tax Considerations for Investors.
A. Mutual Fund Classes and Share Types.
B. Sales Charges and Fees.
C. Redemption and Distribution of Mutual Fund Shares.
A. Features and Benefits of Variable Annuities.
B. Types of Insurance Products.
C. Suitability and Ethical Considerations.
A. Types of Retirement Plans (IRA, 401(k), etc.).
B. ERISA and Regulation of Pension Plans.
C. Tax Considerations in Retirement Planning.
A. Account Types (Individual, Joint, etc.).
B. Investment Strategies based on Client Objectives.
C. Suitability and Client Recommendations.
A. Regulation of Sales Activities.
B. Ethical Considerations in Sales Practices.
C. Customer Communication and Disclosures.
A. Study Materials and Practice Exams.
B. Test-Taking Strategies and Time Management.