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The Series 79 exam, formally known as the Investment Banking Representative Exam, qualifies individuals to work on mergers and acquisitions, underwriting and financial advisory transactions. Administered by FINRA, it focuses on the knowledge needed for investment banking activities rather than broader securities sales. Candidates typically pursue the Series 79 after passing the Securities Industry Essentials (SIE) exam and gaining sponsorship from a FINRA-member firm.
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What Is the Series 79 Exam?
The Series 79 exam is designed for individuals pursuing a career in investment banking. Professionals in this role support capital raising, advise on mergers and acquisitions, and guide clients through complex financial transactions. The credential focuses specifically on investment banking functions rather than general securities sales.
Who Administers the Exam
The Series 79 is administered by the Financial Industry Regulatory Authority. FINRA is a nonprofit organization responsible for regulating broker-dealers and enforcing industry standards in the United States. To pass the Series 79 exam, candidates must achieve a score of at least 73%.
What the Exam Covers
The exam evaluates whether candidates can perform the core responsibilities of an entry-level investment banker. This includes analyzing financial data, conducting due diligence and advising clients on transactions such as securities offerings and mergers.
Content areas include underwriting and new financing transactions, types of securities offerings, registration requirements, mergers and acquisitions, tender offers and financial restructuring. The material emphasizes both analytical skills and regulatory knowledge.
Exam Format and Cost
The Series 79 is a computer-based exam consisting of 75 scored multiple-choice questions and 10 unscored questions that are mixed in. Candidates are given access to a calculator and whiteboard during the test. The exam fee is $395. 1
Series 79 Requirements
To earn the Series 79 license, candidates must pass both the Securities Industry Essentials (SIE) exam and the Series 79 exam. The SIE covers foundational industry knowledge, while the Series 79 focuses specifically on investment banking activities.
Candidates must be sponsored by a FINRA-member firm or another eligible self-regulatory organization (SRO). Sponsorship is required before registering for the exam and typically reflects an employer’s intent to hire or train the candidate for an investment banking role.
A sponsoring firm submits the Uniform Application for Securities Industry Registration or Transfer (Form U4) through the Central Registration Depository (CRD). In many cases, the sponsoring firm also pays the exam fee on behalf of the candidate.
If a candidate does not pass the Series 79 exam, they must wait 30 days before retaking it.
Preparing for the Series 79
Experts suggest spending at least 60-100 hours preparing for the Series 79. Preparation for the exam should include a mix of studying, practice questions and classroom instruction.
Many firms offer in-house preparation resources. But if they don’t, you should utilize a third-party exam preparation company. Exam preparation should be a mix of practice questions to familiarize yourself with the format of the test.
Candidates also may want to consider consulting videos, reference materials, and perhaps an instructor. Many consider the Series 79 to be one of the most difficult of FINRA’s exams, so prepare accordingly.
What a Series 79 License Means
Candidates who pass the exam can work as entry-level investment bankers. A Series 79 license gives a financial professional the ability to advise on debt and equity offerings mergers and acquisitions, and tender offers. It also gives them knowledge of how to deal with financial restructurings, asset sales, divestitures or other corporate reorganizations, and business combination transactions
Frequently Asked Questions (FAQ)
How hard is the Series 79 exam?
Many candidates find the Series 79 challenging because it focuses on technical investment banking topics such as mergers, underwriting and financial restructuring. The exam tests both analytical skills and knowledge of regulatory rules, which can require more specialized preparation than broader securities exams.
How long does it take to study for the Series 79?
Study time differs by candidate, though many people dedicate roughly 60 to 100 hours to preparation. This typically involves working through textbooks or study guides, completing practice questions and using prep courses to get comfortable with both the material and the structure of the exam.
Do you need sponsorship to take the Series 79?
Yes, candidates must be sponsored by a FINRA-member firm or another eligible self-regulatory organization. The sponsoring firm files the necessary registration paperwork and typically supports the candidate through the licensing process.
Can you take the Series 79 without the SIE exam?
No, the Securities Industry Essentials (SIE) exam must be passed before earning the Series 79 license. The SIE provides a foundation in the securities industry, while the Series 79 focuses on investment banking-specific activities.
Bottom Line
The Series 79 license prepares financial professionals for investment banking roles focused on capital raising, mergers and acquisitions and corporate transactions. Passing the exam requires sponsorship, completion of the SIE and a strong grasp of technical and regulatory concepts. With targeted study and preparation, candidates can position themselves for entry-level roles in investment banking.
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Article Sources
All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.
- “Series 79 – Investment Banking Representative Exam | FINRA.Org.” FINRA.Org, 1 Nov. 2009, https://www.finra.org/registration-exams-ce/qualification-exams/series79.