FINRA Changes

Earning Your Securities License May Now Make You an Accredited Investor

On Wednesday, the SEC finalized rule changes that will broaden its definition of “accredited investor” to encompass industry professionals who have earned certain FINRA licenses. Continue reading

On Wednesday, the SEC finalized rule changes that will broaden its definition of “accredited investor” to encompass industry professionals who have earned certain FINRA licenses.

An accredited investor is an investor considered sophisticated enough to weigh an investment’s merits independently. Accredited investors have easier access to certain types of investments, such as private equity offerings.

Under the newly expanded definition, General Securities Representatives (Series 7), Private Securities Offerings Representatives (Series 82), and Licensed Investment Adviser Representatives (Series 65) are now accredited investors. The SEC indicated that it may add other FINRA licenses later. Note that passing the exam by itself does not make you an accredited investor – you must have and maintain the license.

The rule change also allows “spousal equivalents” such as domestic partners to qualify as accredited investors based on the total income and assets of both partners, a benefit previously limited to couples who are legally married. Native American tribes and foreign governments now qualify as accredited investors as well.

The Solomon Exam Prep team is always on the lookout for how current developments affect the securities industry. For more updates from our Industry News blog, use the subscribe form on this page.

Increase in FINRA & MSRB Exam Fees

Next month both MSRB and FINRA exam fees will increase. Effective April 1, 2015, individuals who register for one of the following exams will be charged the new rates… Continue reading

Next month both MSRB and FINRA exam fees will increase. The Municipal Securities Rulemaking Board (MSRB) will raise their development fee for professional qualification exams from $60 to $150. In addition, the Financial Industry Regulatory Authority (FINRA) will also raise their exam fees by approximately $5-$15 per exam. Effective April 1, 2015, individuals who register for one of the following exams will be charged the new rates:

[Old rate] new rate

Series 4 – Registered Options Principal [$100] $105

Series 6 – Investment Company Products/Variable Contracts Representative [$95] $100

Series 7 – General Securities Representative [$290] $305

Series 9 – General Securities Sales Supervisor – Options Module [$75] $80

Series 10 – General Securities Sales Supervisor – General Module [$120] $125

Series 11 – Assistant Representative – Order Processing [$75] $80

Series 14 – Compliance Official [$335] $350

Series 16 – Supervisory Analyst [$230] $240

Series 17 – Limited Registered Representative [$75] $80

Series 22 – Direct Participation Programs Representative [$95] $100

Series 23 – General Securities Principal Sales Supervisor Module [$95] $100

Series 24 – General Securities Principal [$115] $120

Series 26 – Investment Company Products/Variable Contracts Principal [$95] $100

Series 27 – Financial and Operations Principal [$115] $120

Series 28 – Introducing Broker-Dealer Financial and Operations Principal [$95] $100

Series 37 – Canada Module of S7 (Options Required) [$175] $185

Series 38 – Canada Module of S7 (No Options Required) [$175] $185

Series 39 – Direct Participation Programs Principal [$90] $95

Series 42 – Registered Options Representative [$70] $75

Series 51 – Municipal Fund Securities Limited Principal [$95] $105 + $150 = $255

Series 52 – Municipal Securities Representative [$120] $130 + $150 = $280

Series 53 – Municipal Securities Principal [$105] $115 + $150 = $265

Series 55 – Limited Representative – Equity Trader [$105] $110

Series 62 – Corporate Securities Limited Representative [$90] $95

Series 72 – Government Securities Representative [$105] $110

Series 79 – Investment Banking Qualification Examination [$290] $305

Series 82 – Limited Representative – Private Securities Offering [$90] $95

Series 86 – Research Analyst – Analysis [$175] $185

Series 87 – Research Analyst – Regulatory [$125] $130

Series 99 – Operations Professional [$125] $130

This information came from http://www.finra.org/sites/default/files/rule_filing_file/SR-FINRA-2015-006.pdf and http://www.msrb.org/~/media/Files/SEC-Filings/2015/MSRB-2015-01.ashx?la=en

FINRA Says Big Changes Coming to Securities Exams

Solomon Exam Prep has learned that FINRA is considering making the following changes to the securities exam system… Continue reading

Solomon Exam Prep has learned that FINRA is considering making the following changes to the securities exam system:

In 2015, the Series 55 and the Series 56 will be combined to become the Series 57. The Series 57 will not have a prerequisite. A Series 57 rep will need the Series 24 to become a principal.
In 2016, FINRA will begin a new exam, to be called the Securities Industry Essentials exam (SIE). The SIE will cover basic security industry knowledge and will become a prerequisite to the Series 6, Series 7, Series 22, Series 57, Series 79, Series 82, Series 86/87, and Series 99. You will not need be sponsored by a FINRA member firm to take the SIE. SIE exam results will not appear in BrokerCheck.
After passing the SIE, individuals can continue on to what FINRA is calling a “top-off exam” for the Series 6, Series 7, Series 79, Series 82 and Series 99. So, for example, if someone wants to be Series 7 and Series 79 registered, the individual will take and pass the SIE then take and pass the top-off exams for the Series 7 and Series 79. FINRA says the SIE is estimated to be 100 questions, and the top-off exams will consist of the remaining balance of questions (i.e. Series 7 currently has 250 questions, so the Series 7 top-off would contain 150 questions.)
Those who are currently registered will be grandfathered in and will not need to take the SIE.
Individuals who have been out of the industry 2-4 years will only need to take the top off. Individuals who have been out of the industry for more than four years will need to take the SIE and top off.
FINRA will be retiring the Series 62 exam.

Follow Solomon Exam Prep as we keep you up-to-date on these important changes.