FINRA Series 6Exam information
Exam information
What it is, what's tested, and how it's scored.
Series 6 exam details
The Series 6 exam - the Investment Company and Variable Contracts Products Representative Qualification Examination (IR) - is designed to test the competency of an entry-level candidate to perform their job as an investment company and variable contracts products representative. The exam seeks to measure the degree to which each candidate can perform the critical functions of such a representative, and ensure that all proper rules and regulations are followed in the candidate's execution of the role.
The Series 6 exam was created to qualify candidates as Investment Company and Variable Contracts Products representatives. The exam seeks to measure the degree to which each candidate can perform the critical functions of such a representative, and ensure that all proper rules and regulations are followed in the candidate's execution of the role.
The Series 6 exam is hosted by FINRA and costs $75 to register. Participants have 1 hour 30 minutes to answer 50 multiple-choice questions. The passing score is 70% (35/50).
Eligibility and sponsorship
The Series 6 has a co-requisite for licensing with the Securities Industry Essentials (SIE) exam. Both exams must be completed in order to become fully licensed with your FINRA Series 6.
You need to be sponsored by a FINRA member firm or a self-regulatory organization (SRO), typically your employer, in order to register for and take the Series 6 exam. You will also need to fill out and submit Form U4, which can be found on and submitted electronically on FINRA's website.
Administration of the exam
The Series 6 exam is administered via computer. A tutorial on how to take the exam is provided prior to taking the exam.
Each candidate's exam includes 5 additional, unidentified pretest items that do not contribute toward the candidate's score. The pretest items are randomly distributed throughout the exam. Therefore, each candidate's exam consists of a total of 55 items (50 scored and 5 unscored).
There is no penalty for guessing. Therefore, candidates should attempt to answer all items.
Candidates will be allowed 90 minutes to complete the Series 6 exam.
Candidates are not permitted to bring reference materials to their testing session. Severe penalties are imposed on candidates who cheat or attempt to cheat on FINRA-administered exams.
Scoring of the exam
All candidate test scores are placed on a common scale using a statistical adjustment process known as equating. Equating scores to a common scale accounts for the slight variations in difficulty that may exist among the different sets of exam items that candidates receive. This allows for a fair comparison of scores and ensures that every candidate is held to the same passing standard regardless of which set of exam items they received.
FINRA's Series 6 exam summary
Seeks Business for the Broker-Dealer from Customers and Potential Customers
24%
12 questions
Contacting current and potential customers by any method. Developing promotional and advertising material, and seeking appropriate approvals to distribute them. Describing investment products and services to current and potential customers with the intent of soliciting business.
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives
16%
8 questions
Informing customers of the types of accounts and providing appropriate disclosures. Obtaining and updating customer information and documentation, including required legal documents and suspicious activity. Obtaining customer investment profile information. Obtaining required supervisory approvals.
Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets, and Maintains Appropriate Records
50%
25 questions
Providing customers with investment strategies, risks and rewards, and relevant market and investment research data. Reviewing customer investment profiles to determine investment recommendations. Providing required disclosures regarding investment products and their risks. Communicating with customers about their accounts and maintaining documentation.
Obtains and Verifies Customers' Purchase and Sales Instructions; Processes, Completes and Confirms Transactions
10%
5 questions
Providing current quotes, processing and confirming customer transactions including regulatory requirements, and informing customers of delivery obligations and settlement procedures. Informing the appropriate supervisor and assisting in resolution of disputes or errors.
Achievable Series 6 content outline
1
Introduction
Introduction to the Series 6 exam.
2
Common stock
General characteristics and suitability of common stock investments, how to analyze value through fundamental analysis, and options.
3
Preferred stock
General characteristics and suitability of preferred stock investments, dividend yields, and additional features.
4
Debt securities
General characteristics and suitability of debt securities, impact of interest rates on market prices and yields, duration, and volatility.
5
Corporate debt
Types of corporate debt securities, various bank securities, and suitability.
6
Municipal debt
Types of municipal debt securities and suitability.
7
US government debt
Types of US government debt, agency mortgage-backed securities, and suitability.
8
Investment companies
Legal definition and regulation of investment companies, plus the general characteristics and suitability of open-end (mutual) funds, closed-end (publicly traded) funds, exchange traded funds (ETFs), and unit investment trusts (UITs).
9
Insurance products
General characteristics and suitability of fixed annuities, variable annuities, and variable life insurance products.
10
The primary market
General characteristics and regulations of the primary market. The rules of the Securities Act of 1933, which include IPO rules, exemptions, and the registration process.
11
The secondary market
Essentials of the secondary market, which is governed by the Securities Exchange Act of 1934. Specific stock markets, participants in the financial markets, order types, and applicable regulations.
12
Brokerage accounts
How brokerage accounts work, the process of opening one, and the different types of accounts available. Cash accounts, margin accounts, fiduciary accounts, and rules relating to firms offering brokerage accounts.
13
Retirement & education plans
Structures of ERISA-governed qualified and non-qualified retirement plans. Education plans (Coverdell ESPs and 529s), ABLE accounts, contribution limits, penalties, and suitability for specific plans.
14
Rules & ethics
The do's and don'ts of finance, specifically relating to registered representatives. Public communications, disclosure requirements, best practices, and ethical obligations to clients.
15
Suitability
High level review of suitability standards when making recommendations to clients. Product summaries, investment objectives, investor profiles, best practices when making recommendations, and test taking skills.
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