If you’re wondering what a FINRA license is, it’s the license you might need to work in the finance industry. This includes banks, credit unions, securities, and investment firms, and insurance agencies. If you are looking for a new job or are considering switching careers, such as becoming an investment banker, it’s important to know that each position comes with different licensing requirements.
If you want to work in these areas of finance, or if your profession requires that you be licensed by FINRA, this article will lay out the process of getting a FINRA license, and the category of FINRA license you’ll need for specific industry roles.
What are the different categories of FINRA licenses?
The type of securities license you’ll need is mostly determined by your goods, transactions, and advice. Not only does having a license allow you to expand your financial goods and services, but it also allows you to improve your management method. We’ll cover them briefly in this article, but you can check out this list of FINRA licenses for more in-depth coverage.
The SEE looks at the securities industry in general, as well as regulating organizations and authorized activities. The SEE looks at the whole picture. The Financial Business Regulatory Authority (FINRA) oversees this, and test drivers must have a basic understanding of the various products and risks available in the industry.
Unlike other licenses, you do not need to be sponsored for the test by a FINRA-approved business. If you are a recent college graduate, the SIE certification may assist you to get a job in the industry. In addition, the SIE test should be taken and passed before obtaining additional FINRA licenses.
Series 6 & 26
Best for Registered Insurance Representatives
Series 6, known as the Investment Company and the Exam of Qualification Representatives for variable contracts, gives you the status of registered official. This license will allow you, as well as investment trusts, to market mutual funds, variable life insurance, and pensions.
To take the examination, a FINRA member company must sponsor you and pass the SIE test. The Series 6 license will work as a financial advisor or as an insurance agent to a professional.
After passing Series 6, you can move on to the Series 26 Principal Review, the investment business, and the variable contracts. Anyone with strong leadership and supervisory abilities will benefit greatly from this certification.
Best for General Securities
Representatives of the General Securities are professionals who have passed the Series 7 exam. You can buy and sell securities such as stocks, bonds, and mutual funds. They also sell corporate, municipal, and investment corporation securities, as well as variable rents, direct participation programs, options, and public securities.
Because it covers so many distinct securities sectors, Series 7 is one of the most challenging exams in the financial business. Although many other financial assessments take 180 minutes or less, this one takes 225 minutes.
The Series 7 requirement will apply to a number of new licenses, including Series 4, 9/10, 24, and 26. Those with this license are known as stockbrokers, and they will be able to pick from a wide range of companies and industries.
Best for: An additional requirement in some states alongside Series 7 for Ethical Training
Aside from a Series 7 license, stockbrokers and anybody who wishes to sell stocks often need a Series 63 license as well. The ethical obligations and fiduciary duties of a professional who acquires and sells securities are the topics of this Unitary Stocks Agency State Law Exam.
A Series 63 license is not required in all states, and sponsorship is not required. It’s critical to double-check state regulations before taking this exam.
Best for: Advisory roles in investments and analysis
To offer investment advice and analysis for professional purposes, a 65th Series: Uniform Investment Advisor Law Exam License is required. Professionals with this license are known as representatives of Investment Advisors in various countries.
With a 65-series license, you may expand your financial services firm. Similar to the 63rd series exam, there is no requirement for sponsorship.
Series 9 & 10
Best for: Becoming a supervisor in General Securities
If you wish to go from a sales office to a role in general securities, you’ll need to pass both the Series 9 and 10 exams. With the 9 and 10 Series licenses, you have the option of overseeing your sales operations with mortgage securities and municipal securities.
Before taking these tests, you must pass both the SIE and Series 7 exams and be sponsored by a FINRA member firm. When you can only take one exam at a time, you must pass both the 9th and 10th series tests within two years to register as a general supervisor of securities.
The firm’s general sales and trading processes are registered and certified for supervision of the primary and secondary safety markets once you pass both exams. If you want to work as a brokerage branch manager, you must pass the series 9 and 10 exams.
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