FINRA Overview: The Financial Industry Regulatory Authority (FINRA) was created in July 2007 when the National Association of Securities Dealers (NASD) merged with the self-regulatory functions of the New York Stock Exchange (NYSE).
FINRA Exams: FINRA administers a lengthy list of exams that are among the most important credentials for people holding key positions in member firms. For some jobs, it may be necessary to hold multiple certifications, by passing multiple exams. For most FINRA certifications, re-testing every few years is necessary, to demonstrate that you have kept up with developments in the industry.
Taking FINRA Tests: You cannot take FINRA tests as an individual. Instead, you must be sponsored by a FINRA member firm. Thus, your employer will determine what tests you need to pass, depending on your job. Training for FINRA tests normally is through self-study, although some employers may offer in-house prep classes.
Per the above, attempting to change employers and move into a new job for which you do not already have the necessary FINRA certification can be problematic. Your new firm would, in effect, be hiring you on a contingent basis. You, meanwhile, will be in a potentially difficult spot if you do not pass the test.
Series 7: The General Securities Representative qualification is perhaps the best known, mandatory for Financial Advisors and certain other sales positions.
Series 6: The Series 6 qualification allow the holder to transact business in a much more limited set of investment products than Series 7. These are essentially limited to packaged investment products such as mutual funds and variable annuities.
Series 63 and 66: These exams cover state securities regulations, and also may be necessary for most Financial Advisor positions.
Series 65: Series 65 is the Uniform Investment Adviser Law Exam which qualifies the holder to be an investment advisor representative. In an exception to the general rule, you do not need to be sponsored by a FINRA member firm to sit for this test. It is required by many states, but individuals may be exempt based on other qualifications that they hold, such as Series 7, Series 66, a CFP and/or a CFA, among others.
For more information: See the FINRA website.
