Before an individual is allowed to become a professional within the securities industry, there are a series of exams that are required via the Financial Industry Regulatory Authority (FINRA). The The Series 7 Exam includes 7, 79 and 82, in addition to other exams. An exam “sponsorship” is required before FINRA will allow individuals to sit for the exams.
Specific areas of the securities industry are variously covered in the exams and each also includes questions related to general knowledge of the securities industry overall. Because of the serious nature and purpose of the Series 7 exam, also known as the General Securities Registered Representative license, broker dealer sponsorships are required, resulting in individuals seeking sponsors for the exam.
Here Are Some Ways To Find Sponsorship For The Series 7 Exam;
1. What are the advantages found in taking and passing the Series 7 exam?
After passing the exam, you will be allowed to sell a wide range of securities, which is crucially important for your career:
1. You will be allowed to sell corporate stocks and bonds, municipal bonds, and mutual funds.
2. You will be allowed to sell annuities, options, and direct participation program partnerships.
3. You will be allowed to sell packaged securities, such as collateralized mortgage obligations.
2. What are the prerequisites to obtaining a securities license?
1. Take the SIE exam and the Series 7 exam in order to obtain your license. In the SIE exam, common subjects within the financial industry are questioned, such as fundamentals, regulatory agencies and their functions, product knowledge, and the range of practices within the industry. An SIE exam can be taken before being sponsored by a dealer broker. After passing, you’ll have 4 years to pass any representative level exams, such as Series 7. The requirement of FINRA is that both exams are passed prior to obtaining your license.
3. How can I find a sponsorship in order to take the Series 7 exam?
To take the Series 7 exam, you must be sponsored by a FINRA member firm or a self-regulatory organization (SRO). The application process for a FINRA exam sponsorship includes:
- Personal demographic details
- The series designation
- Professional designations
- A 5-year history of home addresses
- Professional employment history
- Personal bankruptcy statements
- Disclosures regarding civil or criminal cases
Typically, a sponsorship can be found within the firms of friends or associates within the industry. You can also check with firms through the FINRA registry. The sponsoring firm applies for the exam by filling out a Uniform Application for Security Industry Registration or Transfer form and the sponsoring firm typically covers the cost of the exam on behalf of the applicant.
4. Besides assistance in testing for the Series 7 exam, what else does a sponsorship provide?
When your sponsorship is set, you’ll probably be invited to study with a training provider, who will offer testing materials and study sheets to assist you in passing the exam the first time.
The sponsorship training will cover a number of areas in the exam, including the general knowledge section and specific items detailed in the Series 7 exam. The training prepares you for the levels of examination and questions found within certain sectors of the exam. Included in the training are subjects such as:
- Knowledge of FINRA and required exams for your role
- Understanding self-regulated organizations
- Mergers and acquisitions in the securities industry
- Turnaround or restructuring
- Public and private investment banking
The additional training you will receive from the sponsorship will be wide and deep knowledge and experience based on the skills of broker dealers within the securities industry. You’ll receive support in multiple assignments and oversight in projects from inception to closure. The duration of time spent with a sponsorship securities firm will be, in all likelihood, the place where you’ll prepare for and be ready for a greatly expanded role within the securities industry.
If your finra sponsorship offers a customized program, a “regulatory bridge” is provided by the sponsoring firm to cover the time between the start of a new securities firm by the individual and the FINRA broker-dealer approval. The regulatory bridge covers the gap between the development of new business and the necessary approvals to authorize the new firm. Choose a well-known securities firm to take advantage of an interim sponsorship that will offer the bridge in a customized program.
The exacting requirements of FINRA in the exam process is a challenge in many ways; however, finding a sponsorship for the Series 7 exam can offer an exceptional learning process, including the depth and experience of highly-skilled executives who speak into the education of an applicant. The resulting knowledge that comes with the sponsorship experience outshines any of the FINRA exams in the long run.