FINRA Top-Off exams for finance career paths

From outbound sales to sophisticated technical analysis, a finance career offers multiple rewarding paths, each requiring a unique set of skills. The industry’s structure is straightforward: every major specialization has an associated certification and a corresponding FINRA Exam necessary for licensing in that specific area. This framework provides a clear, high-level overview of the major finance career paths available in the industry.

How to enter finance

The first essential step for any aspiring professional looking to pursue one of these careers is passing the Securities Industry Essentials (SIE) Exam. The SIE Exam is FINRA’s entry-level assessment designed for those seeking a way into the finance industry. Uniquely, you can sit for the SIE Exam without sponsorship from a FINRA-member firm, making it accessible to anyone interested in starting a finance career. We highly recommend that individuals aiming for finance career paths earn the FINRA SIE before applying for entry-level finance jobs. You can take our free SIE practice exam to experience the format of the real test.

Success in launching your chosen finance career path, however, involves more than just passing the SIE. Achieving the SIE alone does not fully license you for roles such as financial advisor or trader. Before taking on licensed responsibilities within your chosen field, you must complete the full licensing process. The SIE Exam only represents the first phase. The next critical step is passing what are now called “Top-Off Exams,” modern equivalents of the well-known old FINRA Series Exams. To take a Top-Off or Qualification Exam tied to your selected finance career path, you must receive sponsorship from a FINRA-member firm.

Each Top-Off Exam serves as a gateway into a specific area among many finance roles. In the following sections, we’ll explore each Top-Off Exam in detail and highlight the distinct professional roles made accessible by passing. The primary Top-Off Exams include:

Series 6: Investment Company Representative (IR)

Passing the Series 6 Top-Off Exam gives you the ability to become an Investment Company Representative, which gives the license holder the ability to sell “packaged” financial products like mutual funds, variable annuities, unit investment trusts (UITs), and insurance. In practicality, this license is most commonly for people working in insurance advisorship and sales at a finance or insurance firm.

What’s the difference between a Series 6 and Series 7 license?

The Series 6 license is similar to the Financial Advisor license that requires passing the Series 7, but has important limitations on what products you can offer clients. With a Series 6 license, holders are restricted in the scope of securities they can sell. Specifically, those with a Series 6 are not permitted to sell corporate or municipal securities, direct participation programs, or options. The Series 6 is designed to qualify representatives to focus on certain packaged financial products rather than a broad array of individual securities.

Common addition: Life and Health

Most professionals holding a Series 6 license also choose to take the Life and Health exam, expanding their financial service offerings. Obtaining this additional credential allows Series 6 representatives to be licensed to sell a wider array of insurance products, including life insurance, accident and health insurance, annuities, long-term care insurance, and Medicare supplement insurance. By earning both the Series 6 and Life and Health licenses, financial professionals can further broaden their insurance expertise and better serve the diverse needs of their clients.

Series 7: General Securities Representative (GS)

Passing the Series 7 license exam qualifies you to sell nearly all major consumer securities, including common and preferred stocks, call and put options, bonds, and a wide range of individual fixed income investments. Earning your Series 7 license also provides the authority to offer virtually all packaged investment products, with the exception of those that require an additional Life and Health Insurance license.

There are only a few financial products that holders of the Series 7 license cannot offer directly: commodities futures, real estate, and life insurance products. Each of these investment options simply requires securing a separate license.

The Series 7 license is regarded as the most popular FINRA Top-Off Exam, prized for its versatility and broad recognition in the securities industry. Individuals who obtain a Series 7 license are officially referred to as “registered representatives,” but are often informally known as financial advisors or stockbrokers.

The Series 9 and Series 10 General Securities Sales Supervisor Exams offer a path to advancement in this field. Holders of these licenses are able to supervise sales activities at a general securities-oriented office.

Series 22: DPP Representative (DR)

Passing the Series 22 Top-Off Exam qualifies you to work with and offer direct participation program (DPP) products to clients. The Series 22 license specifically enables financial professionals to sell and recommend non-traded pooled investments such as real estate or energy DPPs, which are typically long-term investments. DPPs provide retail investors with the opportunity to participate in large-scale, cash-intensive investment ventures, like commercial real estate projects or energy developments, without requiring a substantial initial capital outlay.

Series 22 Registered Representative roles are highly specialized, focusing primarily on direct participation programs and private securities offerings. Pursuing the Series 22 licenses is generally recommended for individuals with a strong interest in DPP products or those seeking an additional credential to complement their primary financial licenses.

Series 57: Securities Trader (TD)

Passing the Series 57 Top-Off Exam is essential for those seeking a career as a Securities Trader Representative, granting the ability to trade both equity and debt securities in various markets. Earning your Series 57 license allows you to engage in NASDAQ trading, over-the-counter (OTC) equity trading, and proprietary trading. Many professionals who hold the Series 57 or Series 87 registration work in roles such as Equity Trader, Fixed Income Trader, Foreign Exchange (Forex) Trader, Commodities Trader, or Derivatives Trader. Below is a brief overview of key roles associated with the Series 57 and Series 87 licenses:

• Equity Traders with a Series 57 license actively trade publicly listed stocks and shares, frequently on behalf of asset management firms or broker-dealers.
• Fixed Income Traders specialize in trading bonds, government securities, and other fixed income assets. Their expertise also extends to riskier products such as collateralized debt obligations, which played a significant role during the 2008 financial crisis.
• Foreign Exchange (Forex) Traders use licenses like the Series 57 to participate in global currency markets. They aim to profit from currency fluctuations driven by economic changes, geopolitical events, and market sentiment.
• Commodities Traders rely on registrations like the Series 57 Top-Off Exam to trade commodities such as gold, crude oil, soybeans, and metals, seeking returns based on changing macroeconomic factors impacting these resources.
• Derivatives Traders employ their Series 57 credentials to trade in options, futures, and other leveraged derivative products. Trading derivatives carries high risk due to the potential for substantial gains and losses.

The Series 57 replaced the former Series 55 as the principal exam for registering equity traders, adapting to industry shifts such as the rise of high-frequency trading and updated market regulations. Earning this license is also a critical step for individuals pursuing advanced securities trading roles.

Series 79: Investment Banking Representative (IB)

Passing the Series 79 Top-Off Exam opens the door to a range of finance career paths in investment banking, one of the most lucrative and competitive sectors in the industry. With a Series 79 license, professionals are typically involved in key areas at the entry level of investment banking: Debt or Equity Offerings, Mergers and Acquisitions, and Restructuring. Unlike the Series 99, which focuses on operations professionals, the Series 79 is tailored for individuals aiming to pursue transaction-based roles and advance within the field of investment banking.

Debt or Equity Offerings

This category of work is what companies undertake when they’re offering up either their debt or stock to be purchased by the broader public in exchange for capital. The pricing of these securities falls under investment banking, as does their creation (called origination). Investment banks will take on the underwriting (essentially “sponsoring”) of the security, marketing it, structuring it, and syndicating it. It also managed the allocation and stabilization activities of these offerings.

Mergers & Acquisitions and Restructuring

This category of work is what companies undertake when they seek to either purchase another company, sell to another company, merge with another company, or “restructure” their company.

When dealing with mergers and acquisitions, investment bankers tender offers, price the asset being purchased or sold fairly (or in their client’s favor), and handle all of the logistics involved. In return, the investment bank gets a cut of the deal.

In this context, restructuring often means the reorganization of a company’s business units or divestitures (selling off or killing off business units within that business). For example, if your company sold four products and each product was a 100-person “business unit,” selling one to a competitor to get out of a tough market or reduce costs would be a divestiture.

The Series 79 Top-Off Exam is the second most popular top-off exam due to the size and turnover in the investment banking industry. Be warned: Investment banking is notorious for both the incredible earning potential (new college graduates often earn six figures in major cities) and rigorous hours (sometimes over 80-100 hours per week). If you’re interested in investment banking, we highly recommend WallStreetOasis, a community of investment bankers and aspiring investment bankers.

Series 82: Private Securities Offerings Representative (PR)

The Series 82 Top-Off Exam is designed to enable professionals to facilitate private securities transactions for their sponsor organizations, making it an essential credential in the world of private placements. While most people associate securities trading with public markets like the NYSE and NASDAQ, there is a less transparent but increasingly important market for private securities. This sector has grown alongside the rise of startups that remain private for longer periods and achieve higher valuations.

Series 86 and 87: Research Analyst (RS)

Passing the Series 86 and Series 87 Top-Off Exams qualifies you to create in-depth research reports for financial firms. Series 86 candidates develop key skills as Research Analysts, learning how to collect, interpret, and evaluate data concerning a specific firm, its industry, and its competition. The analysis performed, including complex financial modeling and advanced technical evaluation, forms the foundation for credible investment insights. After conducting thorough research, the Research Analyst drafts a comprehensive report for public release, which carries both their own name and that of their firm (a significant point of professional pride).

The Series 86 exam specifically emphasizes the analytical and research-based components of the Research Analyst’s role, ensuring proficiency in assessing company fundamentals and market trends. In contrast, the Series 87 section focuses on the rules for composing research reports and accurately disseminating that information in compliance with industry regulations.

Getting an Exception from the Series 86 and 87 Top-Off Exams

You may be eligible for an exception from the Series 86 Top-Off Exam if you have successfully completed both Level I and Level II of the Chartered Financial Analyst (CFA) Exam, or both Level I and Level II of the Chartered Market Technician (CMT) Certification Examination. However, even with this Series 86 exemption, all candidates are still required to take the Series 87 Top-Off Exam to fulfill the research analyst registration requirements. If you do not hold a CFA but are pursuing an exception, you must first pass one of the following qualifying exams: Series 7, Series 17, Series 37, or Series 38.

Series 99: Operations Professional (OS)

Passing the Series 99 Top-Off Exam equips you to supervise brokerage operations within your firm. Successfully completing the Series 99 demonstrates your ability to manage the core day-to-day functions of a financial company, including transaction processing, developing operational procedures, and ensuring full compliance with all relevant financial regulations. Earning your Series 99 not only validates your expertise but also positions you to oversee that your brokerage maintains smooth operations while adhering strictly to the law.

Conclusion

There are numerous finance career paths you can pursue, each offering unique opportunities within the financial industry. Whether your goal is to become a financial adviser, insurance specialist, trader, investment banking representative, research analyst, or operations professional, you’ll need to pass the relevant Top-Off Exam for your chosen career in finance. Gaining a clear understanding of these finance career paths can help shape your job search strategy, leading you to secure an internship or entry-level position to launch your career.

Before sitting for any Top-Off Exam, it is necessary to obtain a position at a FINRA-registered firm and to pass the SIE Exam. Candidates should pass the SIE Exam before applying for finance jobs, as doing so can strengthen their resume and demonstrate their foundational knowledge of important financial concepts. To support your exam preparation and help you begin exploring various finance career paths, we offer a comprehensive SIE Exam prep program that you can try free of charge.

Best of luck as you explore exciting finance career paths and take the next steps toward your professional goals!