What Is the Series 6?

Series 6 is a securities license entitling the holder to register as a company's representative and sell certain types of mutual funds, 澳洲幸运5官方开奖结果体彩网:variable life insurance, 澳洲幸运5官方开奖结果体彩网:municipal fund securities, 澳洲幸运5官方开奖结果体彩网:variable annuities, and 澳洲幸运5官方开奖结果体彩网:unit investment trusts (UITs). Holders of the Series 6 license are not authorized to sell corporate or municipal securities, direct participation programs, and options.

Licensed Professionals

The Series 6 license is used in the financial services industry. Jobs utilizing the Series 6 license include financial advisors, retirement plan specialists, investment advisors, and private bankers. The 澳洲幸运5官方开奖结果体彩网:Financial Industry Regulaꦉtory Authority (FINRA) license allows an individual to act as a registered representative and sell mutual funds, variable annuities, and unit investment trusts (UITs).

A Series 6 holder cannot sell other securities, such as stocks, bonds, and options. If an individual wants to sell th🥂ese types of securities, they need a different license, such as ꧒the FINRA Series 7 license.

Individuals with a Series 6 license provide investment advice and recommendations to clients, process transactions, and maintain accurate records of their activities. Series 6 licensees may work for a brokerage firm, bank, insurance company, or other financial institution.

FINRA Requirements

To obtain the Series 6 license, candidates must pass the Investment Company/Variable Contracts Products Limited Representative (Series 6) exam. The 澳洲幸运5官方开奖结果体彩网:Securities Industry Essentials (SIE) exam is a corequisite for the Series 6 exam but does not require firm sponsorship.

The Financial Industry Regulatory Authority (FINRA) administers the Series 6 exam. The test covers mutual funds, variable annuities, securities, tax regulations, retirement plans, and insurance products. Candidates must be sponsored by a member of FINRA or a 澳洲幸运5官方开奖结果体彩网:self-regulatory organization (SRO) to take the exam, which contains 50 scored questions.

Upon receiving a passing grade, candidates must register with FINRA through their sponsoring firm to transact authorized securities. Holders of Series 6 are considered limited representatives of their sponsoring firm who can sell certain types of mutual funds, variable annuities, and variable life insurance.

Taking the Exam

FINRA began offering online testing administered by Prometric, including the Series 6 exam, in 2020. Candidates or their employers must install specialized software and provide cameras. A Series 6 license expires two years after employment unless under special circumstances such as military deployment. The  exam is valid for up to four years.

A passing grade of 70% is achieved by correctly answering at least 35 of the 50 questions within 90 minutes. Five additional questions are unscored for a total of 55 questions. The test costs $75 and is administered via computer with no reference material allowed. As outlined by FINRA, the Series 6 exam covers four specific sections.

• "Seeks Business for the Broker-dealer from Customers and Potential Customers," which is 12 questions—covering 24% of the exam.
• "Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives" is eight questions covering 16% of the exam.
• "Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets, and Maintains Appropriate Records" is half the exam, with 25 questions covering 50% of the exam.
• "Obtains and Verifies Customers' Purchase and Sales Instructions; Processes, Completes, and Confirms Transactions" is five questions—covering 10% of the exam.
  

Series 6 vs. Series 7

The Series 6 exam is often compared to the Series 7 exam. The Series 6 exam costs less and has a shorter test covering less material. However, a Series 6 license is all that some financial advisors, investment advisors, and retirement planners need to sell insurance, annuities, and certain types of mutual funds.

Series 6 holders cannot sell stocks, 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs), or bonds. Financial advisors and retirement planners who want to sell ETFs must obtain a Series 7 license, which requires taking a longer and more comprehensive exam. The Series 7 license is more expansive than the Series 6 and may open more job opportunities in the securities industry.

The Bottom Line

The FINRA Series 6 is a se🐠curities license that allows an individual to act as a registered representative and sell mutual funds, variable annuities, and unit investment trusts (UITs)♕. Individuals must pass the Series 6 examination administered by the Financial Industry Regulatory Authority (FINRA).