Introduction
In order to become a registered representative, the Financial Industry Regulatory Authority (FINRA) requires you to pass the Securities Industry Essentials (SIE) exam, as well as a “Series” exam, such as the Series 6 or the Series 7.
If you’re reading this, you probably already know the basics about the world of stocks, bonds, mutual funds, exchange-traded funds (ETFs), the capital markets, retirement accounts, FINRA and SEC rules, and other important information about the securities industry. That’s because you’ve probably already passed the SIE exam. Passing the SIE was an important step in your industry education. Now you likely have a job at a FINRA member firm, and you want to become a registered representative. To do that, though, you’re going to have to pass a job-specific FINRA licensing exam, in this case, the Series 6.
Though only 50 questions long, the Series 6, also called the Investment Company Products and Variable Contracts Limited Representative Examination, is not an easy exam. FINRA wants the Series 6 to be challenging for good reason: it is the exam that qualifies individuals to sell securities of companies registered under the Investment Company Act of 1940. This means that passing the Series 6 exam allows you to sell redeemable securities (mutual funds, unit investment trusts) and variable contracts (variable annuities, variable life insurance), as well as closed-end funds at their initial offering. FINRA writes the exam and is also responsible for policing the securities industry and making sure firms and their associated persons (representatives like you) follow the laws enacted by Congress, as well as the rules created by the SEC and FINRA.
Requiring individuals to pass the Series 6 is a key tool in FINRA’s self-regulatory toolkit. FINRA wants to make sure that people who are buying and selling securities on behalf of others are competent and will behave legally and ethically. For Series 6 students like you, it mean