In the United States, the investment company products/variable life contracts representative exam, is commonly referred to as the Series 6 exam. Individuals passing this multiple choice exam are licensed to sell a limited set of securities products:
- Mutual funds
- Closed-end funds on the initial offering only
- Unit investment trusts
- Variable Annuities
A Series 6 registered individual is not a stockbroker since Series 6 license holders cannot sell stock, other corporate securities, direct participation programs (DPPs), or option products.
This exam is administered by the Financial Industry Regulatory Authority (FINRA, previously known as the NASD). In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO). The cost of the exam is $40. Individuals are allowed 90 minutes to complete 50 multiple choice questions. The passing score is 70%, and those who fail this exam must wait thirty days before taking it again. In order to be registered with the Series 6, an individual must also pass the Securities Industry Essentials Exam (The SIE Exam).
The table below lists the allocation of exam questions for each main job function of an investment company and variable contracts products representative.
| Job Functions | Number of Questions |
|---|---|
| Function 1 – Seeks Business for the Broker-dealer from Customers and Potential Customers | 12 |
| Function 2 – Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 8 |
| Function 3 – Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 25 |
| Function 4 – Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 5 |
See also
Sources
- Financial Industry Regulatory Authority (http://www.finra.org/industry/series6)
- http://www.series6examtutor.com (via FINRA's series 6 content outline)