A FINRA securities license enables you to offer financial advice and sell investments to clients. The pathway to licensure involves completing one or more FINRA-administered exams to test your knowledge of the securities industry. Which securities license should you earn? The answer largely hinges on the type of clients you serve and the services you offer.

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FINRA Securities License Guide

FINRA administers more than two dozen securities license exams, which are grouped into five categories:

FINRA Representative-Level Exams. Exams in this category are designed to prepare financial professionals to hold specific roles within the securities industry. Series 6 and Series 7 licenses fall under this umbrella.
FINRA Principal-Level Exams. Principal-level exams offer licensure for individuals who oversee or supervise other securities professionals.
Municipal Securities Rulemaking Board (MSRB) Exams. As the name suggests, these exams are designed for financial professionals who work in municipal securities.
National Futures Association (NFA) Exams. This category includes licensing exams for financial professionals specializing in futures and commodities trading.
North American Securities Administrators Association (NASAA) Exams. Exams in this category, including Series 63 and Series 65, are designed to test financial professionals’ knowledge of state securities regulations.

Let’s take a more detailed look at some of the most popular FINRA securities licenses.

Series 6 – Investment Company and Variable Contracts Products Representative Exam

A Series 6 license assesses your competency to work as an investment company and variable contracts products representative. Holding a Series 6 license allows you to sell:

Mutual funds
Variable annuities
Variable life insurance
Unit investment trusts
529 college savings plans

Financial advisors, insurance brokers and retirement plan specialists are some of the financial professionals who may hold a Series 6 license.

There are three requirements to earn a Series 6 license:

Take the Securities Industry Essentials (SIE) Exam. This entry-level exam tests your basic knowledge of the securities industry and the markets. Anyone 18 or older can take the SIE and the results are valid for four years.
Obtain sponsorship. Series 6 exam candidates must be associated with and sponsored by a FINRA member firm or a self-regulatory organization (SRO) member firm.
Pass the Series 6 Exam. The Series 6 exam consists of 50 multiple-choice questions spanning four core knowledge areas. You’ll need to have your sponsoring organization register you for the exam, which has a 90-minute testing window. A score of 70 or higher is passing.

Learn more about the Series 6 Exam here.

Series 7 – General Securities Representative Exam

A financial professional prepares to take the General Securities Representative Exam.

A Series 7 license allows you to work as a General Securities Representative. Series 7 license holders are authorized to buy and sell a broad range of securities products, including:

Public offerings and private placements
Rights
Warrants
Mutual funds and money market funds
Unit investment trusts
Exchange-traded funds
Real estate investment trusts
Options on mortgage-backed securities
Government securities
Venture capital investments
Hedge funds

A Series 7 license is often a requirement for entry-level positions in the securities industry. You’ll also need a Series 7, along with a Series 66 license, to start an RIA if you don’t have a Series 65 license.

There are three requirements to earn a Series 7 license:

Take the SIE as a corequisite
Obtain sponsorship from a FINRA member firm or SRO member firm
Pass the Series 7 exam

The Series 7 exam is a three-hour and 45-minute exam that covers 125 multiple-choice questions. Exam content covers the sale of corporate securities, municipal securities, investment company securities, variable annuities, options and government securities.

A score of 72 is considered passing. Learn more about the Series 7 exam here.

Series 63 – Uniform Securities Agent State Law Exam

A Series 63 license is a North American Securities Administrators Association (NASAA) exam that’s administered by FINRA. This securities license allows you to sell securities in most states.

You don’t need to meet sponsorship or corequisite exam requirements to earn a Series 63 license. You simply need to pass the Series 63 exam.

The test format is 60 multiple-choice questions. You’ll have 75 minutes to complete the exam. A passing score is 43 correct out of 60.

Learn more about the Series 63 exam and license here.

Series 65 – Uniform Investment Adviser Law Exam

The Series 65 license is required for financial professionals who want to work as investment advisor representatives (IARs) for a registered investment advisory (RIA) firm. You’ll need a Series 65 license if you plan to start an RIA (or work for one) and offer financial advice in exchange for fees.

Like the Series 63 exam, the Series 65 exam is a NASAA exam that’s administered by FINRA. The exam consists of 140 questions, of which 130 are scored. You’ll have 180 minutes to complete the exam. A passing grade is 92 out of 130 questions answered correctly.

Sponsorship is not required for the Series 65 exam. If you’re registering with the state as an IAR, you may be able to substitute one or more professional designations for a Series 65 license, including:

Certified Financial Planner™ (CFP®)
Chartered Financial Consultant (ChFC)
Chartered Financial Analyst (CFA)
Personal Financial Specialist (PFS)
Certified Investment Management Analyst (CIMA)

Learn more about the Series 65 securities license and how to register for the exam here.

Series 66 – Uniform Combined State Law Exam

A Series 66 license qualifies financial professionals to act as broker-dealer representatives and investment advisor representatives within a state. Holding a Series 66 license is equivalent to having both a Series 63 and Series 65 license.

You don’t need to meet sponsorship requirements to sit for the Series 66 exam. However, you’ll need to complete the SIE and Series 7 exams as corequisites.

The Series 66 exam consists of 100 multiple-choice questions, of which you’ll need to answer at least 73 correctly to pass. The testing period is 150 minutes.

Learn more about the Series 66 exam and license here.

Frequently Asked Questions (FAQs)

Do Financial Advisors Need a FINRA Securities License?

If you plan to sell securities and/or offer financial advice, you’ll need one or more FINRA securities licenses. The license(s) you’ll need will depend on the type of securities products you plan to sell, the services you offer and where you plan to do business.

What Are the Most Common FINRA Licenses?

The Series 6 and Series 7 licenses are among the most commonly obtained licenses among advisors. With the Series 6 license, you can gain experience selling a limited range of securities, including mutual funds and annuities. A Series 7 license allows you to expand your services and sell a broader range of securities products.

Do FINRA Securities Licenses Require Sponsorship?

Certain exams administered by FINRA require sponsorship from a FINRA member firm or SRO member firm. If you plan to earn a securities license that requires sponsorship, your sponsoring firm will need to register you. Once registered, FINRA will share the details of what you’ll need to do to complete the necessary exam.

Bottom Line

A FINRA securities license may be necessary to advance your career.

A FINRA securities license may be necessary to advance your career. Plus, it’s helpful to understand what they allow you to do as an advisor. Knowing who you want to serve and what you’d like to offer your ideal clients can help you narrow down the list of which licenses it makes sense to earn.

Tips for Growing Your Advisory Business

Starting an RIA is an exciting prospect if you’re ready to break free from the employer-employee model and go independent. While you might be able to bring your book of business with you, it’s still important to consider how you’ll market your new business to attract more clients. Partnering with an advisor marketing platform can help make the transition easier. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service that financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
Earning one or more professional designations can add to your credibility as an advisor. For example, earning CFP® marks could help you stand out from the crowd and attract clients who want advice from a knowledgeable financial planner. You’ll need to complete the CFP® exam and meet education, work and ethics requirements to obtain this designation.

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