What is the Series 6 Exam ?
The Series 6 exam, also known as the Investment Company and Variable Contracts Products Representative Qualification Examination, is a licensing exam administered in the United States by the Financial Industry Regulatory Authority (FINRA). It is designed to assess the competency of individuals who want to sell mutual funds, variable annuities, and other investment products regulated under the Investment Company Act of 1940.
The purpose of the Series 6 exam is to ensure that individuals have the necessary knowledge and understanding of investment products, securities regulations, and ethical practices to effectively serve clients and comply with industry regulations. It tests the candidate's knowledge of topics such as mutual funds, variable annuities, securities markets, investment company products, retirement plans, taxation, and regulatory guidelines.
Passing the Series 6 license exam is a requirement for individuals who wish to work as representatives in the securities industry and sell mutual funds and variable annuities. Once you pass the exam, you will be eligible to register as an Investment Company and Variable Contracts Products Representative (IR) with FINRA.
The exam consists of 50 multiple-choice questions, and candidates have 1 hour and 30 minutes to complete it. The passing score is 70%, meaning candidates need to correctly answer at least 35 out of the 50 questions. Preparing for the Series 6 exam requires a thorough understanding of the exam content, familiarity with regulatory guidelines, and the ability to apply knowledge to real-world scenarios. Candidates often utilize study materials, training courses, and practice exams to enhance their preparation.
How Does the Series 6 Exam Work ?
The Series 6 exam is a computer-based exam that consists of 50 multiple-choice questions. Here's an overview of how the exam works:
1) Test Center or Remote Proctoring:
You can take the Series 6 exam either at a designated test center or through remote proctoring, depending on the options provided by the testing organization.
2) Check-In Process:
When you arrive at the test center or start the remote proctoring session, you'll need to provide identification and go through the check-in process to verify your identity.
3) Exam Format:
The Series 6 exam consists of 50 multiple-choice questions, each with four answer choices (labeled A, B, C, and D). The questions are presented one at a time on the computer screen.
4) Question Navigation:
You can navigate through the questions using the provided navigation buttons (e.g., Next, Previous, Review). You can also mark questions for review to revisit them later.
5) Answer Selection:
For each question, select the answer choice that you believe is correct by clicking on the corresponding option. You can only choose one answer for each question.
6) Progress Tracking:
The computer screen typically displays information about your progress, such as the number of questions answered and the time remaining. This can help you keep track of your pace during the exam.
7) Scoring:
The Series 6 exam is scored based on the number of correct answers. Each question carries one point, and there is no penalty for incorrect answers. The passing score is 70%, which means you need to answer at least 35 out of the 50 questions correctly to pass.
8) Exam Results:
After completing the exam, you will receive your score immediately if you take the exam at a test center. For remote proctoring, it may take a few days to receive your results.
Structure of Series 6 Exam
The allocation of Series 6 license exam items for each major function is as follows:
Functions | Percentage of Exam Items | Number of Exam Items |
(F1) Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | 12 |
(F2 Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | 8 |
(F3) Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | 25 |
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | 5 |
TOTAL | 100% | 50 |
Series 6 Exam Requirements
To be eligible to take the Series 6 exam, individuals must meet certain requirements set by the Financial Industry Regulatory Authority (FINRA). Here are the key requirements for the Series 6 exam:
1) Association with a FINRA Member Firm:
You must be associated with a FINRA member firm, such as a broker-dealer, investment advisor, or other financial institution that is authorized to sell investment products. This means you need to be sponsored by the firm to take the exam.
2) U.S. Citizenship, Permanent Residency, or Visa:
The Series 6 exam is typically open to U.S. citizens, permanent residents, and individuals holding valid work visas that permit employment in the United States. Non-U.S. citizens must have the necessary legal authorization to work in the country.
3) Age Requirement:
There is no specific age requirement to take the Series 6 exam. However, some states may have minimum age requirements to be employed in the financial industry. Make sure to check the regulations of your state or jurisdiction.
4) Regulatory and Background Checks:
Before taking the Series 6 exam, you will be required to undergo regulatory and background checks. This includes disclosing any criminal history, disciplinary actions, and financial events that may impact your ability to work in the securities industry.
5) Continuing Education:
After passing the Series 6 exam and becoming registered, you will be subject to continuing education requirements. These requirements typically include completing certain training modules or courses periodically to maintain your registration and stay updated on industry regulations and best practices.
It's important to note that the requirements for the Series 6 exam may vary slightly depending on the specific rules and regulations of each state or jurisdiction. It's advisable to consult with your employer or the firm sponsoring you to ensure you meet all the necessary requirements and have the appropriate authorization to take the exam.
Series 6 Exam Cost
The cost of the Series 6 exam can vary depending on several factors, such as the testing center, study materials, and any additional fees associated with the exam. Here are some potential costs to consider:
1) Exam Fee:
The primary cost is the exam fee itself, which is paid to the Financial Industry Regulatory Authority (FINRA). The fee for the Series 6 exam is $75 due at the time of registration.
2) Study Materials:
To prepare for the exam, you may choose to invest in study materials, such as textbooks, online courses, or study guides. The cost of these materials can vary depending on the provider and the package you choose. Prices can range from around $100 to several hundred dollars.
3) Training Courses:
Some candidates opt for training courses or review classes provided by educational institutions or training providers. These courses can offer additional guidance and support in preparing for the exam. The cost of training courses can range from a few hundred dollars to several thousand dollars, depending on the provider and the level of instruction.
4) Exam Prep Resources:
Practice exams and study aids can be beneficial in preparing for the Series 6 exam. There may be additional costs associated with purchasing practice exam packages or study materials from third-party providers. The prices for these resources can vary.
5) Retake Fees:
If you do not pass the exam on your first attempt and need to retake it, there may be additional fees associated with retaking the exam. The fee for subsequent exam attempts is $40.
It's important to note that these costs are approximate and can change over time. Additionally, it's worth considering any other expenses that may arise during your exam preparation, such as transportation or accommodation if you need to travel to a test center, and any fees associated with background checks or registration with your employing firm.
What Does the Series 6 Exam Include ?
The exam consists of multiple-choice questions that cover various topics related to investment products and the regulations governing their sale. Here are the main areas covered in the Series 6 exam:
1) Securities Markets, Investment Securities, and Economic Factors:
This section focuses on the structure and functioning of securities markets, types of investment securities, and economic factors that can impact investment performance.
2) Investment Companies and Exchange-Traded Products:
It covers the characteristics, types, and regulations governing investment companies, including mutual funds, closed-end funds, and exchange-traded products (ETPs) like exchange-traded funds (ETFs).
3) Retirement Plans and Insurance Products:
This section explores different types of retirement plans, such as individual retirement accounts (IRAs) and employer-sponsored plans like 401(k)s, as well as insurance products like life insurance and annuities.
4) Customer Investment Recommendations and Sales Practices:
It focuses on ethical considerations, the know-your-customer (KYC) process, and the suitability of investment recommendations for clients.
5) Securities Industry Regulations and Rules:
This section covers key regulations and rules established by FINRA and other regulatory bodies, such as the Securities and Exchange Commission (SEC), that govern the securities industry and the conduct of registered representatives.
How Long is the Series 6 Exam ?
The Series 6 exam has a time limit of 1 hour and 30 minutes (90 minutes). During this time, candidates must complete 50 multiple-choice questions. The exam is computer-based, and the timer starts when you begin the exam. It's important to manage your time effectively during the exam to ensure you have enough time to read and answer each question.
How to Register for the Series 6 Exam ?
To register for the Series 6 exam, you will need to follow these steps:
1) Obtain Sponsorship:
Before registering for the exam, you must be associated with a FINRA member firm, such as a broker-dealer, investment advisor, or financial institution. The firm must sponsor you to take the Series 6 exam.
2) Create an Account on FINRA's Central Registration Depository (CRD):
The sponsoring firm will assist you in creating an account on FINRA's CRD system. This system is used for registration and licensing of individuals in the securities industry.
3) Complete Form U4:
As part of the registration process, you will need to complete Form U4, which is a Uniform Application for Securities Industry Registration or Transfer. The sponsoring firm will assist you in filling out this form, which collects personal, professional, and regulatory disclosure information.
4) Pay Exam Fee:
Once your Form U4 is submitted, you will need to pay the exam fee. As of my knowledge cutoff in September 2021, the fee for the Series 6 exam is $40. The sponsoring firm usually handles the payment process.
5) Schedule the Exam:
After your registration is complete and the exam fee is paid, you can schedule your exam appointment. You can do this through the testing organization approved by FINRA, such as Prometric or Pearson VUE. You can select a test center and date that is convenient for you.
6) Prepare for the Exam:
Use the time leading up to your scheduled exam to prepare and study. Utilize study materials, training courses, and practice exams to familiarize yourself with the exam content and improve your chances of success.
It's important to note that the specific registration process and requirements may vary, and it's essential to follow the instructions provided by your sponsoring firm and the testing organization to ensure a smooth registration process. Additionally, it's advisable to consult the most up-to-date resources and guidelines provided by FINRA or the testing organization for detailed information on the registration process and any updates or changes.
Series 6 Exam Dates
Candidates will require an approved accommodation starting on June 9, 2023, in order to book an online appointment for an NFA or FINRA exam (other than the SIE). If the candidate does not have a valid accommodation, any online appointments made after September 9, 2023, would be cancelled.
The scheduling and availability of the Series 6 exam are managed by FINRA and its authorized testing centers. To obtain the most accurate and up-to-date information regarding exam dates, you should visit the official FINRA website or contact FINRA directly.
What is the Series 6 License used for ?
Obtaining a Series 6 license allows an individual to work as a registered representative or investment company/variable contracts products representative. Here are some key activities and responsibilities that the Series 6 license enables:
1) Selling mutual funds:
With a Series 6 license, you can offer and sell mutual funds to clients. Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities, such as stocks, bonds, or other assets.
2) Selling variable annuities:
Variable annuities are investment products that provide a combination of investment growth potential and insurance benefits. A Series 6 license allows you to sell variable annuities, which have investment components tied to mutual funds or other investment options.
3) Providing investment advice:
While the Series 6 license primarily focuses on the sale of investment products, it also permits you to offer basic investment advice related to the products you are licensed to sell. However, it does not authorize you to provide comprehensive financial planning or broader investment advice.
4) Assisting clients with account management:
As a registered representative with a Series 6 license, you can help clients open and manage investment accounts, including facilitating transactions, processing paperwork, and addressing client inquiries related to their investments.
It's important to note that the Series 6 license does not cover activities such as trading individual stocks, bonds, or options. For those activities, different licenses, such as the Series 7 or Series 65/66, may be required.
Contact
If you're looking for information or assistance regarding the Series 6 license exam, you may contact the appropriate regulatory body or organization that administers the exam. In the United States, the Series 6 exam is administered by the Financial Industry Regulatory Authority. You can reach out to FINRA support through the "Contact Us" section on the official FINRA website or contact them directly for any inquiries you may have about the exam.
Frequently Asked Questions
How hard is the series 6 exam?
The difficulty of the Series 6 exam can vary depending on an individual's level of preparation, background knowledge, and experience in the financial industry.
What is the format of the Series 6 license exam?
The Series 6 exam consists of 50 scored multiple-choice questions, along with 5 additional unscored experimental questions. The exam is computer-based and has a time limit of 1 hour and 30 minutes.
What topics are covered in the Series 6 exam?
The exam covers a range of topics, including mutual funds, variable annuities, securities markets, investment company products, retirement plans, taxation, and regulatory guidelines.
What is the passing score for the Series 6 exam?
The passing score for the Series 6 exam is 70%. This means you need to correctly answer at least 35 out of the 50 scored questions.
Can I retake the Series 6 exam if I fail?
Yes, if you fail the exam, you can retake it. However, you must wait at least 30 days before attempting to retake the exam.
Is there a study material available for the Series 6 exam?
Yes, there are various study materials available to help you prepare for the Series 6 exam. These may include textbooks, online courses, practice exams, and study guides. Many training providers offer comprehensive study packages specifically designed for the Series 6 exam.
How long is the Series 6 exam valid?
The Series 6 license exam does not have an expiration date. Once you pass the exam, you have met the qualification requirement, and the license remains valid as long as you maintain your association with a FINRA member firm.
Are there any prerequisites for the Series 6 exam?
No, there are no prerequisites or educational requirements to take the Series 6 license exam. However, individuals must be sponsored by a FINRA member firm.