The Financial Industry Regulatory Authority (FINRA) rolled out a new qualifications exam this week for people looking to enter or re-enter the securities industry.
Specifically, FINRA launched the Securities Industry Essentials (SIE), which assesses a candidate’s knowledge of basic products, the structure, and function of the securities industry, the regulatory agencies and their functions, and regulated and prohibited practices.
“As part of our mission to protect investors and the integrity of markets, FINRA ensures that all registered representatives working in the securities industry have the requisite knowledge to serve their clients,” Robert Cook, president and CEO of FINRA, said. “Our new exam structure will bring greater consistency and uniformity to the process for entering or returning to the securities industry. It will also provide more people the opportunity to explore career options in the securities industry.”
The SIE, which costs $60 to take, can be taken by anyone over the age of 18. It consists of 75 multiple-choice questions. A passing grade is valid for four years. To become a registered representative, candidates must still take the Series 6, Series 7, or other qualifying exams, in addition to the SIE. Most registered representatives who have already taken the Series 6 and Series 7 will not need to take the SIE.
“FINRA has eliminated duplicative testing of general securities knowledge on the representative-level exams by moving such content into the SIE,” John Kalohn, FINRA’s vice president for Testing and Continuing Education, said. “The SIE provides candidates the opportunity to demonstrate their mastery of the fundamental knowledge about the securities industry. We believe this is an important step in the process of qualifying to become registered in the securities industry.”