Navigating FINRA Exams: Guide to All 32 FINRA Licenses
May 30, 2024
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16 min read
Contents
Preparing for FINRA exams is a crucial step for anyone aiming to establish or advance their career in the securities industry.
With 32 different FINRA licenses, each tailored to specific roles and responsibilities, understanding the requirements and expectations for each exam is essential. This detailed guide will walk you through all the FINRA exams, from the introductory Securities Industry Essentials (SIE) exam to the more advanced principal-level and specialty exams.
Whether you want to become a general securities representative, an investment banking representative, or a compliance officer, this guide will offer detailed insights into each exam's structure, content, duration, and cost, helping you to prepare more effectively for your professional goals in the financial sector.
InnReg is a global regulatory compliance and operations consulting team serving financial services companies since 2013. If you need assistance with compliance or fintech regulations, click here.
Overview of FINRA Exams
The Financial Industry Regulatory Authority (FINRA) administers various exams to verify that securities professionals have the knowledge and competence to perform their job roles effectively.
These exams are crucial for anyone looking to work in the securities industry, covering a broad range of topics from basic industry concepts to specific regulatory and operational functions.
Key Points about FINRA Exams
FINRA exams are designed to test the knowledge and skills of securities professionals to confirm they can perform their duties in compliance with industry standards and regulations. Here are some key points you should know about them:
Exam Structure: Each exam typically consists of multiple-choice questions covering various topics relevant to the specific license. Some exams also include unscored pretest questions.
Requirements: Most exams require candidates to be associated with and sponsored by a FINRA member firm or a self-regulatory organization (SRO). The SIE exam is an exception, as it can be taken without sponsorship.
Costs and Duration: Exam fees and duration vary depending on the specific exam. The costs range from $60 to $350, and the time allowed to complete the exams ranges from 45 minutes to 4 hours and 30 minutes.
Categories of FINRA Exams
Here is a breakdown of the main categories of exams administered by FINRA, including those from other regulatory bodies:
Securities Industry Essentials (SIE) Exam: This entry-level exam assesses a candidate's basic knowledge of the securities industry. It covers fundamental concepts, including types of products, risks, and the structure of the securities markets and regulatory agencies.
FINRA Representative-Level Exams: These exams are tailored for professionals who perform specific functions within the securities industry, such as general securities representatives, investment banking representatives, and operations professionals. Examples include the Series 6, Series 7, and Series 79 exams.
FINRA Principal-Level Exams: These exams are for individuals who oversee and supervise other securities professionals. They include exams like the Series 24 for general securities principals and the Series 4 for registered options principals.
Municipal Securities Rulemaking Board (MSRB) Exams: These exams are for professionals involved in municipal securities. Examples include the Series 50 and Series 52 exams.
National Futures Association (NFA) Exams: These exams cover various aspects of futures and commodities trading. Examples include the Series 3 and Series 30 exams.
North American Securities Administrators Association (NASAA) Exams: These exams are designed to verify that professionals are knowledgeable about state securities laws and regulations. Examples include the Series 63 and Series 65 exams.
Understanding the structure and requirements of these exams is the first step in navigating your career path within the securities industry. The following sections will delve into each category and specific exams, providing detailed information to help you prepare effectively.
InnReg can help your firm navigate the complexities of compliance and regulatory requirements. Our team of experts is equipped with the necessary licenses and knowledge to support your compliance needs.
Securities Industry Essentials (SIE) Exam
The Securities Industry Essentials (SIE) exam is an entry-level exam that evaluates your fundamental knowledge of the securities industry. It covers essential concepts like the types of securities products, risks, and the regulatory framework of the financial markets. The SIE exam is a great starting point for anyone interested in a career in the securities industry.
Duration: 1 hour and 45 minutes
Questions: 75
Cost: $80
Passing Score: 70%
Requirements:
Open to anyone 18 years or older
No firm sponsorship required
Topics Covered:
Basic securities concepts
Types of securities products and their risks
Structure of the securities markets and regulatory agencies
Benefits:
Demonstrate a basic understanding of the securities industry
Satisfy a prerequisite for more advanced FINRA exams
FINRA Representative-Level Exams
FINRA Series 6
Investment Company and Variable Contracts Products Representative Exam
The Series 6 exam tests your ability to operate as an investment company and variable contracts products representative.
Duration: 1 hour and 30 minutes
Questions: 50
Cost: $75
Passing Score: 70%
Requirements:
Must pass the SIE exam
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Mutual funds
Variable annuities
Insurance products
Tax regulations and retirement plans
Permitted Activities:
Solicit, purchase, and sell mutual funds (closed-end funds on the initial offering only)
Sell variable annuities and variable life insurance
Offer unit investment trusts (UITs)
Sell municipal fund securities, including 529 savings plans and local government investment pools (LGIPs)
FINRA Series 7
General Securities Representative Exam
The Series 7 exam qualifies you as a general securities representative, covering a wide range of financial topics.
Duration: 3 hours and 45 minutes
Questions: 125
Cost: $300
Passing Score: 72%
Requirements:
Must pass the SIE exam
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Equity and debt instruments
Investment risk
Client interaction practices
Permitted Activities:
Solicit, purchase, and sell a wide range of securities products
Trade corporate securities, including stocks and bonds
Conduct public offerings and private placements
Offer rights and warrants
Sell mutual funds, money market funds, and unit investment trusts (UITs)
Trade exchange-traded funds (ETFs) and real estate investment trusts (REITs)
Handle options on mortgage-backed securities
Deal with government securities, repos, and certificates of accrual on government securities
Manage direct participation programs and venture capital
Trade municipal securities
Advise on and sell hedge funds
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FINRA Series 22
Direct Participation Programs Limited Representative Exam
The Series 22 exam focuses on direct participation programs, such as real estate and oil and gas partnerships.
Duration: 1 hour and 30 minutes
Questions: 50
Cost: $60
Passing Score: 70%
Requirements:
Must pass the SIE exam
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Investment opportunities in direct participation programs
Regulatory requirements for limited partnerships
Permitted Activities:
Sell direct participation programs (DPPs) such as real estate, oil and gas, and equipment leasing
Advise on investment opportunities in limited partnerships
Facilitate investments in limited liability companies (LLCs)
Engage in transactions involving S corporations
FINRA Series 57
Securities Trader Representative Exam
The Series 57 exam is for those looking to become securities trader representatives, ensuring they can execute transactions effectively.
Duration: 1 hour and 45 minutes
Questions: 50
Cost: $80
Passing Score: 70%
Requirements:
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Trading practices
Trade reporting
Market regulations
Permitted Activities:
Execute NASDAQ equity trades on behalf of clients
Conduct over-the-counter (OTC) equity trading
Engage in proprietary trading
FINRA Series 79
Investment Banking Representative Exam
The Series 79 exam targets investment banking representatives, covering various investment banking activities.
Duration: 2 hours and 30 minutes
Questions: 75
Cost: $300
Passing Score: 73%
Requirements:
Must pass the SIE exam
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Mergers and acquisitions
Financial restructuring
Public offerings
Permitted Activities:
Advise on and facilitate debt and equity offerings, including private placements and public offerings
Provide guidance on mergers and acquisitions
Manage tender offers and financial restructurings
Oversee asset sales, divestitures, and other corporate reorganizations
Handle business combination transactions
FINRA Series 82
Private Securities Offerings Representative Exam
The Series 82 exam is for private securities offerings representatives, focusing on the solicitation and sale of private placement securities.
Duration: 1 hour and 30 minutes
Questions: 50
Cost: $60
Passing Score: 70%
Requirements:
Must pass the SIE exam
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Private placement securities
Regulatory requirements
Permitted Activities:
Solicit and sell private placement securities products as part of a primary offering
Advise clients on private securities transactions
FINRA Series 86/87
The Series 86/87 exams are for research analysts, covering financial analysis, valuation, and compliance aspects of research activities.
Duration: 4 hours and 30 minutes; 1 hour and 45 minutes
Questions: 85; 50
Cost: $225; $150
Passing Score: 73%; 74%
Requirements:
Must pass the SIE exam
Must be associated and sponsored by a FINRA member firm or SRO
Exemptions available for certain Chartered Financial Analyst (CFA) or Chartered Market Technician (CMT) levels
Topics Covered:
Financial analysis and valuation
Ethics and best practices in research
Permitted Activities:
Prepare written or electronic communications analyzing equity securities
Analyze companies and industry sectors
FINRA Series 99
The Series 99 exam is for operations professionals, ensuring proficiency in operational roles within securities firms.
Duration: 1 hour and 30 minutes
Questions: 50
Cost: $60
Passing Score: 68%
Requirements:
Must pass the SIE exam
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Customer onboarding
Fund management
Securities lending
Permitted Activities:
Oversee customer onboarding and account maintenance
Manage fund collection, reinvestment, and disbursement
Handle securities and funds transfers and settlements
Administer account reconciliation and firm accounts
Supervise trade confirmations and account statements
Manage margin and stock loan/securities lending
Oversee prime brokerage services
Approve pricing models and financial control processes
Prepare and file financial regulatory reports
Define and validate business and security requirements for trading systems
Maintain compliance with regulatory requirements in financial records and operations
FINRA Principal-Level Exams
FINRA Series 4
Registered Options Principal Exam
The Series 4 exam assesses your ability to oversee options trading and comply with relevant regulations.
Duration: 3 hours and 15 minutes
Questions: 125
Cost: $155
Passing Score: 72%
Requirements:
Must pass the Series 7 exam
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Options strategies and trading
Foreign exchange options
Regulatory requirements and taxation
Permitted Activities:
Supervise options sales practices for equity, foreign currency, interest rate, and index options
Oversee options on government and mortgage-backed securities
FINRA Series 9/10
General Securities Sales Supervisor Exam
The Series 9/10 exams are for professionals aiming to supervise sales activities and trading operations within the securities industry.
Duration: 1 hour and 30 minutes; 4 hours
Questions: 55; 145
Cost: $130; $175
Passing Score: 70%
Requirements:
Must pass the SIE and Series 7 exams
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Supervising sales and trading activities
Approving customer accounts
Training sales personnel
Permitted Activities:
Supervise the sale of corporate securities, rights, and warrants
Oversee sales of closed-end funds, money market funds, and REITs
Manage transactions involving asset-backed and mortgage-backed securities
Supervise equity options and options on corporate-backed securities
Oversee mutual funds, variable annuities, and variable life insurance sales
Manage government securities, repos, and certificates of accrual on government securities
Supervise municipal securities and municipal fund securities transactions
Oversee direct participation programs
FINRA Series 14
The Series 14 exam tests your knowledge of compliance functions and regulatory processes.
Duration: 3 hours
Questions: 110
Cost: $350
Passing Score: 70%
Requirements:
Must be associated with a FINRA member firm or SRO
Topics Covered:
Industry regulatory agencies
Supervision of sales and customer accounts
Financial responsibilities for FINRA and NYSE-member firms
Permitted Activities:
Oversee regulatory compliance for daily firm activities
Manage supervisory functions to align with industry regulations
FINRA Series 16
The Series 16 exam evaluates your ability to supervise the preparation and approval of research reports.
Duration: Part 1: 1 hour and 30 minutes, Part 2: 2 hours
Questions: Part 1: 50, Part 2: 50
Cost: $245 per part
Passing Score: Part 1: 72%, Part 2: 74%
Requirements:
Must be associated with a FINRA member firm or SRO
Exemption on Part 2 for those with certain CFA credentials
Topics Covered:
FINRA and NYSE rules
Valuation of securities
Financial statement analysis and economics
Permitted Activities:
Review and approve research reports on debt and equity securities
Approve discussions on broad-based indices and market conditions
Oversee technical analyses and statistical summaries of financial data
Approve recommendations for industry-specific holdings adjustments
Approve ratings or price target changes, and other specialized research under certain conditions
FINRA Series 23
General Securities Principal – Sales Supervisor Module Exam
The Series 23 exam is for professionals seeking to become general securities principals or sales supervisors.
Duration: 2 hours and 30 minutes
Questions: 100
Cost: $105
Passing Score: 70%
Requirements:
Must pass the SIE, Series 7, and Series 9/10 exams
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Investment banking processes
Trading and market-making activities
FINRA regulations and office management
Permitted Activities:
Oversee regulatory compliance for advertising, market making, trading, and underwriting activities
Supervise within the limitations of representative-level registrations
FINRA Series 24
General Securities Principal Exam
The Series 24 exam qualifies you as a general securities principal, covering a broad range of supervisory topics.
Duration: 3 hours and 45 minutes
Questions: 150
Cost: $175
Passing Score: 70%
Requirements:
Must pass the SIE and one of the following: Series 7, 57, 79, 82, 86/87, or 16
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Regulatory guidelines
Corporate securities and trading
Customer accounts and record-keeping
Permitted Activities:
Oversee regulatory compliance for advertising, market making, trading, and underwriting
Supervise activities within the scope of their representative-level registrations
FINRA Series 26
Investment Company and Variable Contracts Products Principal Exam
The Series 26 exam tests your ability to supervise the sale of investment company products and variable contracts.
Duration: 2 hours and 45 minutes
Questions: 110
Cost: $150
Passing Score: 70%
Requirements:
Must pass the SIE and either Series 7 or 6
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Personnel management and compliance
Sales activities and record-keeping
Maintenance of customer accounts
Permitted Activities:
Supervise sales of investment company products
FINRA Series 27
Financial and Operations Principal Exam
The Series 27 exam is for professionals aiming to become financial operations managers.
Duration: 3 hours and 45 minutes
Questions: 145
Cost: $175
Passing Score: 69%
Requirements:
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Capital requirements and financial reporting
Customer protection and record-keeping
Federal Reserve Board regulations
Permitted Activities:
Supervise back-office operations
Oversee preparation and maintenance of a member firm’s books and records
Manage compliance with financial responsibility rules for self-clearing broker-dealers and market makers
FINRA Series 28
Introducing Broker-Dealer Financial and Operations Principal Exam
The Series 28 exam is for those seeking to become licensed recordkeepers or operations principals for broker-dealers.
Duration: 2 hours
Questions: 95
Cost: $150
Passing Score: 69%
Requirements:
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Record-keeping and financial reporting
Net capital requirements
Uniform practice rules and customer protection
Permitted Activities:
Supervise back-office operations
Oversee preparation and maintenance of a member firm’s books and records
Manage compliance with financial responsibility rules for fully disclosed broker-dealers that do not hold customer funds and securities and do not carry customer accounts
FINRA Series 39
Direct Participation Programs Limited Principal Exam
The Series 39 exam evaluates your ability to oversee direct participation programs.
Duration: 2 hours and 15 minutes
Questions: 100
Cost: $100
Passing Score: 70%
Requirements:
Must pass the SIE and either Series 7 or 22
Must be associated and sponsored by a FINRA member firm or SRO
Topics Covered:
Structure and regulation of direct participation programs
Employee management and compliance
FINRA regulations
Permitted Activities:
Supervise regulatory compliance over sales of direct participation program limited partnerships, including real estate, oil and gas, and equipment leasing
Oversee sales of limited liability companies (LLCs) and S corporations
Supervise a firm’s investment banking and securities business, including compliance, underwriting, and advertising for activities covered by each supervisory principal’s license
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Municipal Securities Rulemaking Board (MSRB) Exams
MSRB Series 50
Municipal Advisor Representative Exam
The Series 50 exam measures the competency of candidates to perform the responsibilities of a municipal advisor representative.
Duration: 3 hours
Questions: 100
Cost: $265
Passing Score: 71%
Requirements:
Must be associated with a municipal advisor firm
Topics Covered:
SEC and MSRB rules
Municipal finance and credit analysis
Debt product pricing and issuance requirements
Permitted Activities:
Provide advice to or on behalf of a municipal entity or obligated person regarding municipal financial products or the issuance of municipal securities
Undertake solicitation of a municipal entity or obligated person on behalf of a municipal advisor
MSRB Series 51
Municipal Fund Securities Limited Principal Exam
The Series 51 exam is for professionals who manage and supervise the sale of municipal fund securities.
Duration: 1 hour and 30 minutes
Questions: 60
Cost: $255
Passing Score: 70%
Requirements:
Must pass the Series 24 or Series 26 exam
Must be associated with a municipal firm
Topics Covered:
Underwriting, trading, and selling municipal fund securities
Record-keeping and customer handling
Supervisory responsibilities
Permitted Activities:
Supervise the sale of municipal fund securities
MSRB Series 52
Municipal Securities Representative Exam
The Series 52 exam qualifies individuals to transact in municipal securities.
Duration: 2 hours and 30 minutes
Questions: 75
Cost: $260
Passing Score: 70%
Requirements:
Must pass the SIE exam
Must be employed and sponsored by a municipal firm
Topics Covered:
Municipal bond basics
Interest rate factors and macroeconomic policy
Municipal securities regulations
Permitted Activities:
Trade municipal securities
Provide investment advice on municipal bonds
MSRB Series 53
Municipal Securities Principal Exam
The Series 53 exam tests the knowledge needed to supervise municipal securities activities.
Duration: 3 hours
Questions: 100
Cost: $265
Passing Score: 70%
Requirements:
Must pass the SIE and Series 52 exams
Must be associated and sponsored by a municipal firm
Topics Covered:
Creation and trading of municipal securities
Settlement practices and record-keeping
Sales supervision
Permitted Activities:
Supervise municipal securities activities
MSRB Series 54
Municipal Advisor Principal Exam
The Series 54 exam evaluates the competency of individuals supervising municipal advisory activities.
Duration: 3 hours
Questions: 100
Cost: $265
Passing Score: 70%
Requirements:
Must pass the Series 50 exam
Must be associated and sponsored by a municipal firm
Topics Covered:
Municipal principal transactions and processes
Regulatory agencies and rules
Monitoring broker-dealer activities
Permitted Activities:
Supervise municipal advisory activities
See also:
National Futures Association (NFA) Exams
NFA Series 3
National Commodities Futures Exam
The Series 3 exam is required for those selling commodities, futures contracts, options, and hedging.
Duration: 2 hours and 30 minutes
Questions: 120
Cost: $140
Passing Score: 70%
Requirements:
Must be associated with a FINRA member firm
Topics Covered:
Market knowledge and theories
Terminologies and regulations
Arbitration procedures
Permitted Activities:
Sell commodities and futures contracts
Engage in hedging and options trading
NFA Series 30
NFA Branch Manager Exam (formerly, Branch Managers Exam – Futures)
The Series 30 exam is for those seeking to manage a futures trading branch.
Duration: 50 minutes
Questions: 50
Cost: $90
Passing Score: 70%
Requirements:
Must be associated with a FINRA member firm
Topics Covered:
Futures trading products and solicitation rules
Employee ethics and account handling
Record-keeping and disciplinary procedures
Permitted Activities:
Manage a futures trading branch
Supervise futures trading activities
NFA Series 31
The Series 31 exam qualifies individuals to sell managed futures funds.
Duration: 1 hour
Questions: 45
Cost: $90
Passing Score: 70%
Requirements:
Must be a registered General Securities Representative with a FINRA member firm
Topics Covered:
Futures and forward contracts
Hedging and yield curve
NFA rules and disclosure documents
Permitted Activities:
Sell managed futures funds
Oversee managed futures fund activities
NFA Series 32
Limited Futures Exam – Regulations
The Series 32 exam is for those registered by regulatory authorities outside the U.S.
Duration: 45 minutes
Questions: 35
Cost: $90
Passing Score: 70%
Requirements:
Must be registered or licensed in the UK or Canada within the two years before filing the application
Topics Covered:
U.S. regulations on commodity futures trading
NFA regulations and compliance
Permitted Activities:
Engage in U.S. futures trading activities
NFA Series 34
Retail Off-Exchange Forex Exam
The Series 34 exam licenses individuals to engage in off-exchange forex transactions with retail customers.
Duration: 1 hour
Questions: 40
Cost: $90
Passing Score: 70%
Requirements:
May be exempted if Series 3 or Series 32 exams are passed
Topics Covered:
Forex trading calculations and risks
Forex market operations
Forex regulations and requirements
Permitted Activities:
Engage in retail off-exchange forex transactions
Advise on forex trading strategies
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North American Securities Administrators Association (NASAA) Exams
NASAA Series 63
Uniform Securities Agent State Law Exam
The Series 63 exam qualifies you to trade securities in any U.S. state.
Duration: 1 hour and 15 minutes
Questions: 60
Cost: $147
Passing Score: Approx. 72%
Requirements:
None
Topics Covered:
State securities rules and regulations
Soliciting customers and record-keeping
Ethical practices and fiduciary obligations
Permitted Activities:
Trade securities in any U.S. state
NASAA Series 65
Uniform Investment Adviser Law Exam
The Series 65 exam qualifies you to become an investment advisor representative.
Duration: 3 hours
Questions: 130
Cost: $187
Passing Score: Approx. 71%
Requirements:
None
Topics Covered:
Portfolio management and investment advice
Retirement investment options
Economic trends and ethical business practices
Permitted Activities:
Provide investment advice and portfolio management
Advise clients on retirement planning and investment options
NASAA Series 66
Uniform Combined State Law Exam
The Series 66 exam qualifies individuals as securities agents or investment advisor representatives.
Duration: 2 hours and 30 minutes
Questions: 100
Cost: $177
Passing Score: 73%
Requirements:
Must pass the SIE and Series 7 exams
Topics Covered:
SEC releases and Uniform Securities Act
Federal laws and general business practices
Financial profiles and portfolio management
Permitted Activities:
Work as a securities agent
Act as an investment advisor representative
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Each exam, whether administered directly by FINRA or related regulatory bodies like the MSRB, NFA, and NASAA, tests your knowledge and skills to meet industry standards and regulatory requirements. By familiarizing yourself with the structure, content, and requirements of these exams, you can strategically plan your career progression and select the right path that aligns with your professional goals.
Preparation is key. Utilize available resources, including study guides, practice exams, and training programs, to enhance your understanding and readiness. Passing these exams not only validates your expertise but also opens doors to various roles and advancements within the financial sector.
As you embark on your journey through the securities industry, keep this guide as a reference to help you stay informed and confident in your ability to achieve your professional aspirations. Each step you take towards certification brings you closer to a rewarding career in this dynamic and vital field.
Is your firm ready to optimize compliance functions and reduce regulatory risks? Partner with InnReg for tailored compliance solutions and access to our team’s extensive expertise and licenses. Contact us today for a complimentary consultation and take the first step towards enhancing your firm's compliance strategy.
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Published on May 30, 2024
Last updated on May 30, 2024
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