Testing integrity in times of COVID-19

Test candidates are bound by guidelines that prohibit cheating or using any unfair means during the exam. Continue reading

On July 13, 2020, FINRA and NASAA responded to the pandemic testing challenge posed by in-person test centers with Prometric’s ProProctor, an online testing service, for certain qualifications exams. The exams for which online testing is permitted are the FINRA Securities Industry Essentials (SIE), Series 6, Series 7 and the NASAA Series 63, Series 65, and Series 66 exams. Read more about the announcement here

Curious about what the ProProctor online testing experience looks like? Click here to find out.

It is interesting to note that although the exams are proctored remotely, candidates are still bound by guidelines that prohibit cheating or using any unfair means during the exam. The checks that have been put in place especially for remote testing are as follows:

  • Candidates are required to provide a 360° view of his/her workstations and surrounding environment;
  • A camera (external or embedded) is required during the course of the exam. If an embedded camera is used, a large free-standing mirror is also required in order to reflect unseen areas;
  • Candidates are asked to participate in a visual person check (including a sleeve, pocket and glasses check);
  • While the exam is in progress, candidates are prohibited from leaving, moving out of or obstructing the camera view while the exam is in progress without prior authorization from the proctor; and
  • Additional requirements that are listed in the ProProctor User Guide.

Warning: a candidate found cheating in an online test will be subject to the same disciplinary actions that he/she would be subject to in a physical test, and if found guilty, can be permanently barred from the broker-dealer industry.

September Study Question of the Month

Answer this month’s study question for a chance to win! Continue reading

This question comes from the Solomon Exam Prep Online Exam Simulator question database for Series 65 & 66:
 
Under modern portfolio theory, which of the following is the most efficient set?
 
A. Expected return 9%,  Standard deviation 8
B. Expected return 9%,  Standard deviation 9
C. Expected return 11%, Standard deviation 8
D. Expected return 11%, Standard deviation 9
 
Submit your answer to info@SolomonExamPrep.com or comment below to be entered to win a Solomon Exam Prep temporary tattoo!

Upcoming Series 63, 65 and 66 Changes

The North American Securities Administrators Association (NASAA) has announced that it will implement updates to the Series 63, Series 65 and Series 66 examinations on July 1, 2016. What has changed? Continue reading

The North American Securities Administrators Association (NASAA) has announced that it will implement updates to the Series 63, Series 65 and Series 66 examinations on July 1, 2016.

The changes are aimed at better aligning the skills and knowledge required by professionals in the securities industry.

The new exam outlines are similar to the current exam outlines, but some significant changes have been made.

What has changed?

Series 63                                                         

  1. The weighting of the exam sections has been modified to put more emphasis on the registration of broker-dealers over investment advisers
  2. Several new topics have been added which reflect an emphasis on communications with customers and cyber-security. Specifically, the following topics have been added or amended:
  • Exceptions for foreign B-Ds
  • B-D supervision of agents
  • Prospectus delivery requirements
  • Types of customer accounts
  • B-D and agent commissions
  • Cyber-security and data protection
  • Outside securities accounts
  • Due diligence for B-Ds
  • Regulation A amendment
  • Regulation D amendment

Series 65                                                         

  1. The weighting of the exam sections has been modified to put slightly more emphasis on the characteristics of investment vehicles and slightly less emphasis on rules and regulations.
  2. Several new topics have been added which expand the types of investment products and add regulations on electronic communications, cyber-security, pay-to-play and anti-money laundering. Specifically, the following topics have been added or amended:
  • Valuation of equity securities
  • Real estate investments
  • Viatical and life settlements
  • Structured products
  • Commodities and precious metals
  • QDROs
  • High frequency trading
  • Regulation A amendment
  • Regulation D amendment
  • Electronic communications and social media
  • B-D and agent commissions
  • Cyber-security and data protection
  • Pay-to-play rule
  • Anti-money laundering
  • Business continuity plans

Series 66                                                         

  1. The passing score has been lowered from 75% to 73%.
  2. The weighting of the exams sections has been modified to put slightly more emphasis on the characteristics of investment vehicles and slightly less emphasis on rules and regulations
  3. Several new topics have been added which expand the types of investment products and add regulations on electronic communications, cyber-security, pay-to-play and anti-money laundering. Specifically, the following topics have been added or amended:
  • Valuation of equity securities
  • Technical analysis
  • Real estate investments
  • Viatical and life settlements
  • Structured products
  • Commodities and precious metals
  • QDROs
  • High frequency trading
  • Regulation A amendment
  • Regulation D amendment
  • Electronic communications and social media
  • B-D and agent commissions
  • Cyber-security and data protection
  • Pay-to-play rule
  • Anti-money laundering

How will this affect my Solomon Exam Prep products?

Solomon Exam Prep will be updating all products offered for the NASAA exams. For those students that currently have materials and are testing after July 1, 2016, we have added an addendum to their Resources folder (located on their student account), that includes all rule changes and updates.

Our Online Exam Simulator has already been adjusted to reflect the new changes, so students will see an option to take full exams structured prior to July 1 or after July 1 – this will allow for any and all students to utilize our products regardless of their anticipated exam date. We are always adding new questions to our database and that will be reflected in the Online Exam Simulator.

In the coming weeks we will also be releasing a new/ updated digital Study Guide that will reflect the upcoming changes. Any current students will have the option of having their digital Study Guide changed to the new edition at that time, or they can continue to study with our current edition and the supplied addendum.

If you have any questions about the changes or our materials, please do not hesitate to call our office at 503.601.0212 or email info@solomonexamprep.com.

New Series 66 Video Lecture – Now Available!

Solomon Exam Prep is pleased to announce the release of a new Series 66 Video Lecture. Updated for 2016, this 9.5 hour video lecture offers a complete overview of the NASAA Uniform Combined State Law Examination. Continue reading

Series 66 Video Lecture

Solomon Exam Prep is pleased to announce the release of a new Series 66 Video Lecture.  Updated for 2016, this 9.5 hour video lecture offers a complete overview of the NASAA Uniform Combined State Law Examination.

Jeremy Solomon breaks down each section of the exam into different topic areas so students can focus on individual topics or watch from beginning to end.

Topics covered include economics and business information, investment vehicle characteristics, client investment recommendations and strategies, state and federal securities acts and related rules and regulations, and ethical practices and fiduciary obligations.

Students get the added benefit of being able to download the slides from the Video Lecture to study at their leisure.

The Solomon Series 66 Video Lecture can be purchased alone, or as part of our recommended Total Study Package. Order online or give us a call at 503-601-0212!

Solomon’s Industry News: November 2015 Edition

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Continue reading

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Every month we will send out industry updates from the past month, so you can stay current and up-to-date on everything that is happening here at Solomon Exam Prep and in the industry.

Check out this month’s edition here: Solomon’s Industry News – November 2015.

To be added to our monthly mailing list, please click here.

Series 66, 2nd Edition, Now Available

Solomon Exam Prep constantly strives to produce the most up-to-date materials in order to give our students the best chance of passing their exam on the first try. Thus, we are proud to announce a new 2nd edition of our Solomon Exam Prep Guide to the Series 66 Uniform Combined State Law Examination. Continue reading

Series 66 2nd EditionSolomon Exam Prep constantly strives to produce the most up-to-date materials in order to give our students the best chance of passing their exam on the first try. Thus, we are proud to announce a new 2nd edition of our Solomon Exam Prep Guide to the Series 66 Uniform Combined State Law Examination. The second edition of the Solomon Series 66 Exam Study Guide includes more examples, visuals and practice questions, as well as additional information on the following topics:

  • Time value of money
  • Discounted cash flow method
  • Business structures
  • Trust and estate accounts, including the taxation of trust and estate accounts
  • Financial goals and strategies
  • Modern portfolio theory
  • Capital asset pricing model, including discussions of alpha and beta
  • Efficient market hypothesis
  • Options strategies
  • Fiduciary responsibilities
  • Investment policy statements
  • Suitability
  • Compensation, including comparisons of investment advisers and broker-dealers
  • Prudent investor standards

According to Solomon Exam Prep President Jeremy Solomon, “The NASAA Series 66 Uniform Combined State Law Examination is one of the most challenging securities licensing exams. After passing the Series 7, people underestimate the Series 66 exam and may not be successful on their first try. With this new edition we have greatly expanded our text and hope to convey the importance of the material the Series 66 covers.”

Regulators have set the bar high for this exam for a simple reason: the Series 66 exam, in conjunction with the Series 7 exam, qualifies you to be a securities agent and an investment adviser representative, so you must know what you’re talking about when giving investment advice or effecting securities transactions. This means that you need to know a lot of information, including the three types of securities registration, the nine types of investment risk, the difference between the strong, semi-strong, and weak forms of the EMH; when a securities professional is permitted to sell non-exempt unregistered securities (never); who may issue a stop order to deny, revoke, or suspend; when rescission is allowed and by whom; what contumacy is and how to avoid it; what prudent investor, suitability, and fiduciary mean—and more!

The comprehensive Solomon Exam Prep Guide to the Series 66 Exam works in three mutually reinforcing ways: it focuses on the most important aspects of the exam, provides you with plenty of practice questions, and continually reminds you why you have to take the test in the ­first place: to protect investors.

With practice questions at the end of each chapter, as well as a helpful glossary, the Solomon Exam Prep Guide will give you the knowledge to tackle the NASAA Series 66 Uniform Combined State Law Examination with confidence!


Solomon Exam Prep has helped thousands of financial professionals pass their FINRA, NASAA, and MSRB securities regulatory exams including the Series 6, 7, 24, 26, 27, 28, 51, 52, 53, 55, 62, 63, 65, 66, 79, 82, and 99. The Solomon Exam Prep training system includes print and digital Exam Study Guides, Online Exam Simulators, Audiobooks, and Video Lectures to address the learning needs of all kinds of test-takers.

Solomon Exam Prep is led by founders Jeremy and Karen Solomon, both of whom maintain a lifelong commitment to advancing learning and education.  Solomon Exam Prep draws from a pool of seasoned educators, practitioners and communicators who are experienced in both investment education and the process of adult learning.

Study Question of the Month – October

This month’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 7, 52, 62, 65 and 66. –ANSWER POSTED– Continue reading

This month’s study question from the Solomon Online Exam Simulator question database is now available.

***Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.***

Study Question

Question (Relevant to the Series 7, Series 52, Series 62Series 65 and Series 66):

The interest rate on a SLGS certificate or bond can never fall below:

Answers:

A. The Treasury rate

B. One basis point above the Treasury rate

C. One basis point below the Treasury rate

D. Zero

Correct Answer: D. Zero

Rationale: The SLGS interest rate is always one basis point below the Treasury security that has a comparable maturity, unless the Treasury rate itself equals zero, which is the floor below which the interest rate on a SLGS cannot go. In this case the Treasury rate and the SLGS rate will be equal.

 

All study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Month – September

This month’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 65 and 66. –ANSWER POSTED– Continue reading

This month’s study question from the Solomon Online Exam Simulator question database is now available.

***Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.***

Study Question

Question (Relevant to the Series 65 and Series 66):

Daredevil Dave, a famous skydiver, is your client. “Double D“ as he is known, comes to you and tells you that in 18 months he is planning on doing his most dangerous dive yet: a free fall from an orbiting space station. Double D says that he doesn’t have life insurance and in case he doesn’t survive this space dive, he wants to make sure his family will be provided for. He wants them to receive a monthly payment of $5,000 in perpetuity. He asks you how much money he will need to pay now in order to achieve this. Assuming a 2% rate of return, and assuming this is going to be Double D’s last dive, you tell him that he will need to contribute:

Answers:

A. $3 million

B. $6 million

C. $9 million

D. $12 million

Correct Answer: A. $3 million

Rationale: A perpetuity is an annuity or stream of payments without end. To calculate the present value of a perpetuity, you divide the periodic payment by the rate of return (also known as interest rate or yield). In this case there are two ways to reach the answer: (1) Divide the 2% rate of return by 12 to get the monthly rate of return: 0.001667, then divide the monthly payment by the monthly rate of return: $5,000/0.001667 = $2,999,400 or (2) Multiply $5,000 times 12 months to get a $60,000 annualized payment to the family and then divide that by the 2% yield or $60,000/.02 = $3 million.

Congratulations Kate F., this month’s Study Question of the Month winner!

All study questions are from Solomon’s industry-leading Online Exam Simulator.

Exam Alert: SEC Issues Bulletin Regarding Diminished Financial Capacity

On June 1, 2015, the SEC issued an investor bulletin about “diminished financial capacity”, which refers to when an individual becomes unable to manage their finances. They recommend a number of steps for individuals to take to prepare for such a condition. Continue reading

Exam AlertOn June 1, 2015, the SEC issued an investor bulletin about “diminished financial capacity”, which refers to when an individual becomes unable to manage their finances. They recommend a number of steps for individuals to take to prepare for such a condition. These steps include:

  • Organize important documents and keep them safe and accessible
  • Give your financial professionals emergency contacts
  • Keep your information and contacts updated
  • Report financial fraud and abuse

Some other options to consider include:

  • Authorizing a durable power of attorney
  • Getting someone you trust involved

Source: Investor Bulletin and Consumer Advisory: Planning for Diminished Capacity and Illness

This alert applies to the Series 6, Series 7, Series 52, Series 65, and Series 66.