The Financial Industry Regulatory Authority (FINRA) plans to roll out its new streamlined and more accessible competency exams for financial services industry professionals in October 2018.
Earlier this month, the Securities and Exchange Commission approved FINRA’s plan for a new Securities Industry Essentials (SIE) exam. The new SIE exam will be open to anyone over the age of 18 interested in breaking into the financial services industry. This means that people do not have to be associated with a financial firm to take the exam, which is different than the way it is now.
“Traditionally, people needed to be hired by a brokerage firm and then take a qualification exam to get a registration,” Alexandra Toton, an associate director with FINRA’s Testing and Continuing Education group, said. “Now they have options.”
The new options make the exam an ideal stepping stone for college students searching for an internship, or professionals looking to make a mid-career change.
The exam tests knowledge of the basics of the securities industry, including investment products and their risks, regulatory agencies and their functions, and prohibited practices among other topics. The new version is designed to be more efficient, meaning it eliminates duplicative testing of general securities knowledge.
“The goal of the new exam is to develop a more efficient format, reduce overlap in licensing exams, and ensure content is relevant to the way the industry does business today,” Joe McDonald, a senior director with FINRA’s Testing and Continuing Education group, said.
FINRA is also revising the Series 6 and the Series 7 exams, which are more advanced exams. The new exam will only test the additional knowledge needed to pass and not go back over the basics. An individual must be sponsored by a firm to take these exams.
“We really took a step back to look at the entire program to identify what’s the best structure for how the industry is performing today,” John Kalohn, vice president with FINRA’s Testing and Continuing Education group, said. “And this is it.”