Series 82
What Is Series 82?
The Series 82 is a certification enabling financial experts to transact private securities for clients.
Understanding Series 82
Series 82 is a certification centered around private securities transactions. Its creation was commanded under the Gramm-Leach-Bliley Act of 1999. In 2001, the Securities and Exchange Commission (SEC) impacted rules that separated the Series 82 transactional capacities from under the umbrella of the Series 7 and the Series 62. The Gramm-Leach-Bliley Act revoked and changed a significant number of the regulations from the Glass Steagall Act, which broadened the service capacities for commercial banks. Thus, commercial banks could offer a more different set of services and could all the more effectively partner with specialist vendors to give securities transactions to customers. The Series 82 was made from this movement and laid out an individual license zeroed in just on the transactions of private securities by registered representatives.
The Series 82 Exam
The Series 82 Exam, otherwise called the Private Securities Offerings Representative Exam, is sponsored by the Financial Industry Regulatory Authority (FINRA) and administered at test centers across the nation. The exam centers around private securities and private placement transactions.
The Series 82 certification can be accomplished and utilized alongside other FINRA-embraced licenses for registered representatives. Series 82 gives obviously portrayed due diligence and testing for the private securities market, adding extra credibility to the private securities market's operational activities and trading productivity. The Series 82 permits representatives to transact private placement securities as part of a primary offering.
The test comprises of 100 numerous decision questions taken north of 150 minutes. A score of 70% or better is required for passing. The Series 82 has no preliminary essentials and just expects that individuals be sponsored by a SEC-registered organization.
The test incorporates the accompanying four sections of material:
Section One โ Characteristics of Corporate Securities
This section completely envelops a wide range of securities in the market. It remembers subtleties for equities, debt, asset-backed securities, real estate investment trusts, common stock, and preferred stock, as well as rights and warrants. It additionally remembers data for investment companies, their organizing, and different fund varieties.
Section Two โ Regulation of the Market for Registered and Unregistered Securities
Section two meticulously describes the situation on the private placement instruments associated with securities. It additionally examines underwriting commitments, financing recommendations, distribution, and pricing. Different subjects remembered for section two incorporate the marketing and advertising of private placements, trading and transactions, and regulations under the Securities Act of 1933 and the Securities Exchange Act of 1934.
Section Three โ Analyzing Corporate Securities and Investment Planning
Section three tests on the analysis of corporate securities. This analysis incorporates balance sheet income statements and cash flow statements for equity securities. It additionally exhaustively incorporates debt analysis, with so much themes as bond ratings, call provisions, interest rate risk, and yield bends. Section three likewise incorporates extensive market subjects, for example, fiscal policy, the Federal Reserve Board, and the economy. In conclusion, it talks about investment planning elements like suitability, investment objectives, limitations, risk, portfolio construction, and tax treatment.
Section Four โ Handling Customer Accounts and Industry Regulations
Section four talks about account documentation and regulatory expectations. This envelops client account forms, investment revelations, documentation, regulatory filings with the Securities and Exchange Commission, and FINRA rules.
Series 82 Licensing
The Series 82 is extremely broad in its scope, expecting licensees to have a careful downplaying of how a wide range of equity, debt, and different securities are examined, endorsed, and offered to investors. Private securities and private placements are investments that are simply offered to a select group of investors. The organizing of their offerings, notwithstanding, follows comparative designs and methods utilized in the public markets.