Series 7 exam

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.

The Series 7 exam ensures a baseline level of proficiency for individuals starting their careers in the financial industry. 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.

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.

Covered activities and products include:

Eligibility

The corequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018. 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). Employers will sponsor candidates as part of employment.

There is no education requirement.

Structure

The Series 7 is a three-hour, forty-five-minute exam. 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.

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

The Series 7 exam tests candidates on four functions.

Test Breakdown by Function Number of Questions Percentage of Test Questions
(F1) Seeks Business for the Broker-Dealer through Customers and Potential Customers 9 7%
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 11 9%
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 91 73%
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 14 11%
TOTAL 125 100%

Registration costs

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

See also

References

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