| Series 6 - Investment Company/Variable
Contracts Products Limited Representative Qualifications Qualifies people to sell mutual funds, unit investment trusts, variable life and variable annuities. |
| Series 63 - Uniform Securities Agent State Law Known as the "blue sky" exam. Most states, including Minnesota, require securities salespersons to successfully complete Series 63 prior to beginning any securities sales activities. |
| Series 7 - Qualification for General
Securities Registered Representatives Holders of a Series 7 license may sell any type of securities to customers including: common and preferred stock; corporate, municipal, and government bonds; investment companies and variable contracts; direct participation programs; and put and call options. |
All new applicants must pay $85 to have their names entered into the CRD database. The fingerprint analysis fee is $27.50. In addition, the testing fees are as follows:
| Series 6 $60 |
Series 63 $65 |
Series 7 $150 |
Prometric Testing offers the securities license examinations. You may contact Prometric Testing by dialing their national phone number 1-800-967-1100. The national phone number has extended business hours.
Before you can schedule an appointment to take your exam, your firm must file the proper application and testing fee for you with the National Association of Securities Dealers (NASD). The NASD will send you an enrollment confirmation that is effective for a stated number of days. For persons associated with NASD member firms, the Central Registration Directory (CRD) mails a Broker-Dealer Status Report to your firm with the enrollment confirmation.
A Form U-4 application and completed fingerprint card are submitted, along with the proper fees, by the broker-dealer firm that will sponsor you for your exams. The Form U-4 is available through your broker-dealer firm or directly from the NASD. The NASD phone number is (301) 590-6500.
You may call 1-800-967-1100 during extended business hours. Due to the many tests administered, you should schedule your exam as far as possible in advance. In addition to the testing date, they will need to know your name and social security number; name of your broker-dealer firm; telephone number where the administrator can reach you or your employer; and name of the test or its identifying test series number.
Prometric Testing is open Monday through Friday, except for holidays.
Once you have been issued an enrollment certificate, your examination must be scheduled during the effective period. Refer to the table below for the effective periods:
| Series 6 120 days |
Series 63 90 days |
Series 7 90 days |
Prometric Testing will not schedule an appointment for a date past the expiration date stated on your enrollment confirmation. If your enrollment expires, the NASD will re-enroll you upon receipt of another exam request form and testing fee.
| Series 6 Exam: Consists of
100 multiple-choice questions. Candidates have 135 minutes to complete
the exam. The exam is divided into the four topical sections listed
below. Also listed is the percentage of each section's representation
in the overall exam. NOTE: Some candidates may receive 105 questions, and be given additional time. If so, the additional five questions do not count toward their score. |
|
| Section 1: Securities and
Markets, Investment Risk and Policies (23)% Corporate securities US Government securities State and municipal bonds Money market instruments Securities markets Economic factors Investment objectives of clients Investment risks Portfolios |
Section 2: Investment Companies,
Taxation and Customer Accounts (36%) Types of investment companies Mutual fund concept Structure and operation of mutual funds Types of mutual funds Dollar cost averaging Federal income tax regulations Customer account documentation Contractual plans |
| Section 3: Variable Contracts and
Retirement Plans (16%) Variable life insurance Variable annuities Separate accounts Qualified plan under ERISA IRAs, Keogh's Defined benefit Defined contribution Tax-deferred annuities under 403(b) 401(k) plans Non-qualified deferred compensation |
Section 4: Securities Industry
Regulations (25%) Securities Act of 1993 Securities Exchange Act of 1934 SIPC Regulation T of the Federal Reserve Board Investment Advisers Act of 1940 Investment Company Act of 1940 SEC rules and regulations NASD rules and regulations |
| Series 63 Exam: Consists of 65 multiple choice questions; 75 minutes testing time. The Series 63 is designed to qualify candidates as securities agents. The examination covers the principles of state securities regulation reflected in the Uniform Securities Act |
| Section 1: Registration of Persons 18
questions (30%) Brokers-dealers
|
| Section 2: Securities 15 questions (25%) Definitions
Exemptions
|
| Section 3: Business Practices 21 questions
(35%) (including fraudulent and dishonest business practices) Communications with clients and prospects (e.g. disclosure, unlawful representations concerning registrations) Trade practices (e.g. suitability, excessive trading, insider trading, selling away, discretion, conflict of interest) Compensation (e.g. fees, commissions) Other issues (e.g. compliance, handling of client funds or securities) |
| Administrative provisions and other remedies
6 questions (10%) Operating procedures for the administrator (e.g. investigation, issuing subpoenas and orders, jurisdiction) Administrative actions (e.g. denial, revocation, suspension) and basis for disciplinary action (including false and misleading filings) Other penalties and liabilities (e.g. civil, criminal) Other provisions (e.g. filing of sales and advertising literature) (5 additional pre-test questions do not count towards score) |
| Series 7 Exam: Consists of 250 multiple-choice questions administered in two parts of 125 questions each. In three hours, you must completed the first part. Then, following a lunch break, you must complete the rest of the exam in three hours. The Series 7 exam covers: | |
| Securities Economics Margin Trading Municipal securities Investment companies |
NASD Law Financial statements Taxes Direct participant programs Options |
A 70% score is required to successfully complete a securities exam.