job functions

Exam Alert: FINRA to Change Series 24 Exam

On July 29, 2014, FINRA filed a proposed revision to the content and structure of the Series 24 General Securities Principal exam. This will update the Series 24 to include new rules and laws, including the adoption of rules from the consolidated FINRA rulebook. The new Series 24 exam outline will be categorized by function, rather than by the current sections. In addition, in the new Series 24 each function will include specific tasks describing activities associated with performing that function, similar to the revised Series 7 and Series 6 exam outlines.

The question distribution will change as well. However, the total number of questions (150), amount of time available to complete the exam (3 hours 45 minutes), and passing score (70%) will remain the same. Also, the Series 24 will continue to include 10 additional, unidentified and unscored “pre-test questions” which means the Series 24 will continue to consist of 160 questions, 150 of which will be scored. The 10 unscored pre-test questions will continue to be randomly distributed throughout the examination.

Unless the SEC objects, FINRA’s proposed revision to its Series 24 exam will be implemented on October 13, 2014.

Source: Proposed Rule Change to Revise the Series 24 Examination Program

This alert applies to the Series 24.

Exam Alert: FINRA Revises Series 26 Exam

Effective June 16, 2014, FINRA will modify the outline for the Series 26 exam. The changes affect the structure of the outline, the distribution of the exam questions, and the content tested on the exam. The total number of scored and unscored questions and the score required to pass remain unchanged. Continue reading

Effective June 16, 2014, FINRA will modify the Series 26 exam. The changes affect the structure of the outline, the distribution of the exam questions, and the content tested on the exam. The total number of scored and unscored questions and the score required to pass remain unchanged.

The structure of the new outline places topics into three “functions” (job responsibilities of an investment company and variable contracts products principal). These functions are then broken down into specific tasks as subsections. This is in contrast to the old outline, which has five broad sections and had subsections based on topics and/or rules.

The question distribution for the exam will change alongside the outline format. There is less of a focus on hiring and qualification and training of representatives. There is an increased focus on supervision, sales practices, and business processing and recordkeeping rules. According to FINRA, “the questions on the revised Series 26 examination place greater emphasis on key tasks such as supervision of registered persons, sales practices and compliance.” FINRA states that this adjustment “better reflects the key tasks performed by an Investment Company and Variable Contracts Products Principal.”

New content that may be tested on the revised exam includes the USA PATRIOT Act and associated anti-money laundering rules, the Fair and Accurate Credit Transaction Act of 2003 (FACT Act) and associated anti-identity theft rules, the Office of Foreign Assets Control (OFAC) Specially Designated National List (SDN), and Federal Deposit Insurance Corporation (FDIC) disclosures. Several new FINRA and SEC rules are on a wide range of topics may also be tested. These topics include disclosures during registration, deferred variable annuities, networking arrangements, proxies, business continuity plans, and holding customer mail, among others.

While some content that was listed on the old outline is not explicitly included on the new outline, test takers should still learn the material. For example, while the new outline does not specifically mention 529 plans or retirement plans, test takers will still be expected to know the rules regarding those products so that they may properly supervise individuals that sell such products.

Source: FINRA Regulatory Notice 14-18: FINRA Revises the Investment Company and Variable Contracts Products Principal (Series 26) Examination Program

This alert applies to the Series 26.

Exam Alert: FINRA Revises Series 6 Outline

On December 16, 2013, FINRA will implement a revision to the Series 6 Investment Company and Variable Contracts Products Representative examination. If you will be taking the Series 6 exam before December 16th you will not be affected, but if not, keep on reading! Continue reading

On December 16, 2013, FINRA will implement a revision to the Series 6 Investment Company and Variable Contracts Products Representative examination. Periodically, FINRA revises its qualification exams to parallel changes made to laws, rules, and regulations associated with the content tested on the exam. If you will be taking the Series 6 exam before December 16^th you will not be affected, but if not, keep on reading!

The most significant change will be to the organization of the Series 6 exam. Rather than having six sections covering individual topics, there will be four sections relating to job functions:

Function 1 — Regulatory fundamentals and business development (22 questions)
Function 2 — Customers’ financial information, identifies investment objectives, provides information on investment products, and makes suitable recommendations (47 questions)
Function 3 — Opens, maintains transfers and closes accounts, and retains appropriate account records (21 questions)
Function 4 — Obtains, verifies, and confirms customer purchase and sale instructions (10 questions)

All of the information on the present outline (and Solomon Exam Prep’s current study materials) will still be covered on the updated Series 6 exam. However, FINRA is adding several rules that anyone sitting for the exam after December 16 should know, including:

FINRA Rule 8312 – FINRA BrokerCheck Disclosure
FINRA Rule 2266 – Disclosure of SIPC Information
FINRA Rule 3220 – Influencing or Rewarding Employees of Others
FINRA Rule 11870 – Customer Account Transfer Contracts
NASD 2510 – Discretionary Accounts
NASD 3110(i) – Holding of Customer Mail
NASD 2340 – Customer Account Statements

Solomon Exam Prep continually updates materials to mirror the changes in the exams so a new Series 6 study guide will be available soon (and the exam simulator even sooner). Until then, a detailed summary of the additions to the Series 6 is available to Solomon customers in the Solomon Exam Prep online system, located in the “resources” folder.

The revised study outline is available on FINRA’s website.

Source: http://www.finra.org/