If you are considering a career in the financial services industry, you might be required to obtain one or more securities licenses before you are able to solicit for business. Two common licenses, the Series 6 and 63, allow registered representatives to sell certain types of securities and investment products. These licensing exams were formerly administered by the National Association of Securities Dealers, or NASD. However, because of a merger in 2007, they are now regulated by the Financial Industry Regulatory Authority, or FINRA.
Series 6 License
If you intend to become licensed as an investment company limited representative, you must take and pass the Investment Company Products/Variable Contracts Limited Representative Qualifications exam, commonly referred to as the Series 6 exam. This licensing exam tests your knowledge of the Investment Company Act of 1940, various types of securities and variable contracts and your ability to properly match a client’s needs with the most appropriate investment products. A passing score on this exam authorizes you to sell a limited menu of investment options including annuities, mutual funds and insurance premiums.
Series 6 Exam Requirements
Before you can sit for the Series 6 licensing exam, you must pass a criminal background check and be sponsored by a self-regulatory organization such as the Securities and Exchange Commission or a business that is a participating FINRA member. The exam consists of 100 multiple-choice questions you must complete within 135 minutes. To pass and become a licensed representative, you must answer at least 70 percent of the questions correctly.
Series 63 License
In addition to the Series 6 license, you must also pass the Uniform Securities Agent State Law Examination, or Series 63 licensing exam, which was created by the North American Securities Administrators Association and is administered by FINRA. Once you successfully complete this exam you are authorized to sell securities and conduct business transactions in the state in which your application what submitted.
Series 63 Exam Requirements
The Series 63 exam is designed to test your knowledge of laws and regulations that apply in the state where you intend to conduct business. The exam is administered in a multiple-choice format and consists of 65 questions, five of which are test questions and will not count towards your overall performance. To receive a passing score, you must correctly answer at least 43 questions.
Based in Virginia, Amanda Banach has been a writer since 2009. Her professional work experience includes roles in media advertising, financial services and human resources. She holds a Bachelor of Arts in human resources management and is PHR-certified.