Series 7 exam

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In the United States, the Series 7 exam, also known as the General Securities Representative Exam (GSRE), is a test for entry-level registered representatives, that demonstrates competency to buy or sell security products such as corporate securities, municipal securities, options, direct participation programs, investment company products and variable contracts. The Series 7 is administered by the Financial Industry Regulatory Authority (FINRA), an industry regulatory agency. [1] [2]

Contents

The Series 7 exam ensures a baseline level of proficiency for individuals starting their careers in the financial industry. [3] It is particularly important for newly hired personnel who may lack prior exposure to finance-related subjects during their university education. Passing the Series 7 exam is often a requirement for other FINRA exams, including those related to options trading and managerial roles. [4]

Permitted activities

A candidate who passes the Series 7 exam is qualified for the solicitation, purchase and/or sale of all securities products, including corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts. [5]

Covered activities and products include:

Eligibility

The corequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018. [6] In October 2018, the 250-question Series 7 exam was replaced by the current top-off exam that is now taken in conjunction with the SIE exam. (A correlative change was made to the Series 6 exam.). In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO). [7] Employers will sponsor candidates as part of employment.

There is no education requirement. [8]

Structure

The Series 7 is a three-hour, forty-five-minute exam. [1] It is held in one four-hour session. There are 125 questions on the test. Candidates have to score at least 72% to pass. The SIE Exam and the Series 7 Exam are co-requisite exams. [9]

Average study time is between 80 and 150 hours depending on current financial knowledge. [10]

The Series 7 exam tests candidates on four functions. [1]

Test Breakdown by FunctionNumber of QuestionsPercentage of Test Questions
(F1) Seeks Business for the Broker-Dealer through Customers and Potential Customers97%
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives119%
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records9173%
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions1411%
TOTAL125100%

Registration costs

As of June 24, 2023, the registration cost is $300. [11]

See also

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References

  1. 1 2 3 "Series 7 Examination". FINRA. Retrieved 2015-03-16.
  2. ↑ "Series 7 Examination". www.sec.gov. Retrieved 2023-06-25.
  3. ↑ Hicks and Stalter, Coryanne and Kate (19 August 2021). "An Advisor's Guide to the Series 7 License".
  4. ↑ CPA, Sam Swenson, CFA. "What Is Series 7?". The Motley Fool. Retrieved 2023-06-25.{{cite web}}: CS1 maint: multiple names: authors list (link)
  5. ↑ "Series 7 – General Securities Representative Exam | FINRA.org". www.finra.org. Retrieved 2023-06-25.
  6. ↑ "FINRA Administered Qualification Examinations". FINRA. Retrieved 2015-03-18.
  7. ↑ "Form U10 | FINRA.org". Archived from the original on 2015-04-11.
  8. ↑ "Frequently Asked Questions About the FINRA Series 7 Exam". Kaplan Financial Education. 9 April 2019. Retrieved 24 June 2023.
  9. ↑ "SIE Exam |SIE Exam Tutor".
  10. ↑ "7 Strategies for Passing the Series 7 FINRA Qualifications Exam". Kaplan Financial Education. 8 April 2019. Retrieved 24 June 2023.
  11. ↑ "Qualification Exams | FINRA.org". www.finra.org. Retrieved 2023-06-24.
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