A Detailed Guide to Understanding FINRA Exam Sponsorship - Bridge Capital Associates (2024)

FAQs

What is the hardest FINRA exam to pass? ›

Among the various FINRA Series exams, many financial professionals consider the Series 7 exam to be the most difficult. This exam is required for individuals who want to become a licensed general securities representative and involves a comprehensive understanding of securities trading and regulations.

As a result, the Series 66 exam is considered by most to be an easier test. Like the Series 65 exam, it qualifies the individual to act as an IAR and fulfills the requirements for state registration. There are exam fees for these exams that must be paid before taking them.

In order for a candidate to pass the Series 65 exam, they must correctly answer at least 92 of the 130 scored questions.

The Financial Industry Regulatory Authority (FINRA) does not report on a Series 7 exam pass rate, but the Series 7 pass rate is estimated to be around 65%. With 3 hours and 45 minutes to complete 125 questions at a required score of 72%, the Series 7 exam doesn't offer a large margin for error.

To take the Series 7 exam, you must be sponsored by a FINRA member firm or a self-regulatory organization (SRO). Firms apply for candidates to take the exam by filing a Uniform Application for Security Industry Registration or Transfer (Form U4).

The Series 7 and the bar exam are both known for their difficulty. You can't really compare the two because of the differences in content and purpose. Both exams require dedicated study and preparation.

On the Day of Your Exam

FINRA now offers candidates the choice to take an exam at a local test center or, for a limited number of exams, proctored remotely online. For either appointment type, please ensure you are prepared in advance of your test appointment and familiar with what to expect on the day of your exam.

How long do I need to study for the Series 7 Exam? When preparing to take the Series 7 exam, you should plan to study for 80-90 hours. Typically, candidates study over the course of 4-6 weeks. The time you need to spend preparing for the exam varies depending on your familiarity with the material.

Do I need to have a sponsor before I take the Series 63, 65, or 66? No. Unsponsored candidates who are not Form U4 registered or currently affiliated with a firm through FINRA's Web CRD system can open an exam enrollment window via FINRA.org request and pay for the S63, S65, or S66 exam.

What will disqualify you from FINRA? ›

Any misdemeanor convictions involving securities, investment, insurance, or commodities laws will result in a disqualification under FINRA. Members can also be suspended for any misdemeanor offense involving fraudulent pretenses such as false report, bribery, perjury, theft, or forgery.

Candidates must be sponsored by a member of FINRA or a self-regulatory organization (SRO) to take the exam. Series 6 exams were traditionally taken in person at test centers, but FINRA began offering them online in 2020.

If You Do Not Pass

Generally, you may take the exam again 30 days after the date of the prior exam. However, if you fail the exam three or more times in succession, you must wait until 180 calendar days have elapsed since the date of your last attempt to pass the exam.

For the SIE exam, you should plan to spend between 100-150 hours with the materials prior to attending the Live Classroom Review to maximize your learning. For the Series 6 Top-Off exam, candidates should plan to spend approximately 80 hours with their materials.

The Financial Industry Regulatory Authority (FINRA) administers the exam. The organization has not placed any limits on the number of times you can attempt to pass the Series 7 exam, and there is no specific education required to take the exam.

While the Series 7 Top-Off exam has some tougher questions because it's all about suitability (matching investments to clients), the SIE Exam is not a piece of cake. It has its own challenges. The SIE Exam has tricky questions about industry rules and regulations that you won't find in any other FINRA exam.

The Series 9 exam is harder due to more calculations, material that is more theoretical, and many students feel that the test is time-constrained.

Having taken and passed both, I can say that without a doubt the CPA exam is more difficult, and for one primary reason… breadth of subject matter. The Series 7 is 3 hours and 45 minutes, is comprised of 125 questions, and has a pass rate of approximately 70%.

For students who have recently completed the Series 7, this is a moderately difficult exam. The Series 65 is more challenging for students who have not completed the Series 7. It's recommended that students learn through a variety of methods, such as reading, as well as continuous practice exams.