After successfully passing the Securities Industry Essentials (SIE) exam, your next crucial step toward becoming a registered financial professional is to associate with a FINRA member firm and then pass a specialized qualification exam. The SIE is your foundational credential, but it's only the first part of a two-part requirement to engage in securities business.
The Two-Part Journey to Becoming Registered
To become fully registered and legally engage in securities business, you must complete two key steps:
- Pass the SIE Exam: This foundational exam covers essential knowledge about the securities industry, including market structure, regulatory agencies, and types of products.
- Pass a Qualification Exam: This specialized exam is specific to the type of business activities you will perform (e.g., selling investment products, managing accounts, or investment banking).
Crucially, you must be associated with a FINRA member firm to be eligible to take any of these specialized qualification exams. Without a sponsoring firm, you cannot proceed to the second part of the registration process.
Why a Qualification Exam is Essential
While the SIE demonstrates a baseline understanding of the securities industry, qualification exams, often referred to as "Series" exams (e.g., Series 7, Series 66), delve much deeper into specific areas. They validate your expertise in particular products, regulations, and practices relevant to your job function. Passing both the SIE and the appropriate qualification exam signifies that you possess the comprehensive knowledge required for your role within the financial services industry.
Finding Your Path: Types of Qualification Exams
The specific qualification exam(s) you need will depend directly on the role you aim to fill within a financial firm. Here are some of the most common qualification exams:
| Exam Name | Primary Focus | Common Roles |
|---|---|---|
| Series 7 (General Securities Representative Exam) | Comprehensive knowledge for sales of various securities products. | Stockbroker, Financial Advisor, Registered Rep |
| Series 6 (Investment Company and Variable Contracts Products Representative Exam) | Investment company products (e.g., mutual funds) and variable contracts. | Mutual Fund Representative |
| Series 79 (Investment Banking Representative Exam) | Corporate finance, mergers and acquisitions (M&A), and securities underwriting. | Investment Banker |
| Series 99 (Operations Professional Exam) | Operational and supervisory functions within the securities industry. | Operations Professional, Compliance Officer |
| Series 63 (Uniform Securities Agent State Law Exam) | State securities regulations, often required in addition to federal exams. | Financial Advisor, Registered Rep (state specific) |
| Series 65 (Uniform Investment Adviser Law Exam) | Investment advisory services, fiduciary duties, and investment strategies. | Investment Adviser Representative |
| Series 66 (Uniform Combined State Law Exam) | Combines aspects of the Series 63 and Series 65 exams. Often paired with Series 7. | Financial Advisor, Investment Adviser |
Practical Steps After SIE Success
Your post-SIE strategy should focus on securing a sponsoring firm and preparing for your next exam:
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Seek Association with a FINRA Member Firm
This is the most critical next step. Without sponsorship, you cannot move forward with taking a qualification exam.
- Networking: Connect with professionals in the financial services industry.
- Job Applications: Actively apply for entry-level positions that require FINRA registration. Many firms offer sponsorship as part of their hiring process.
- Career Fairs: Attend events hosted by financial institutions.
- Insight: Many firms will cover the cost of the Series exam and provide study materials or even dedicated training programs once you are hired.
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Identify the Appropriate Qualification Exam
Once you are associated with a firm, your employer will determine which specific qualification exam(s) are necessary for your role. For example, if you're hired for a general sales role, a Series 7 might be required. If your role involves investment advising, you might need a Series 65 or Series 66.
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Prepare for Your Qualification Exam
These exams are rigorous and require dedicated study.
- Utilize Firm Resources: Many sponsoring firms provide extensive study materials, practice tests, and even in-house training courses.
- Third-Party Study Guides: Supplement your firm's resources with reputable third-party study providers like Kaplan, STC, or Knopman Marks.
- Practice Tests: Consistently take practice exams to identify your weak areas and build confidence.
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Take and Pass the Qualification Exam
Once you're adequately prepared, your firm will schedule your exam. Upon passing both the SIE and the relevant qualification exam, you will be considered fully registered for your specific role.
What to Expect After Passing Both Exams
With both the SIE and the relevant qualification exam passed, you are officially registered to engage in securities business in your defined capacity. This significant achievement opens doors to a variety of roles within the financial services industry, from financial advising and wealth management to investment banking and trading. Remember that ongoing continuing education will be required to maintain your registration throughout your career.
