Series 26

What Is the Series 26?

The Series 26 is an examination administered by the Financial Industry Regulatory Authority (FINRA). Despite the fact that it is frequently just alluded to as the Series 26 exam, its full name is the Investment Company and Variable Contracts Products Principal Eam.

As its full name proposes, breezing through the Series 26 exam qualifies possibility for register as a limited principle responsible for overseeing faculty who sell redeemable securities, for example, mutual funds, variable insurance contracts, and other financial products as framed in the Investment Company Act of 1940.

How the Series 26 Works

The purpose of the Series 26 exam is to shield the investing public by guaranteeing that new experts managing the sale of redeemable securities are outfitted with basically a negligible level of information and capability. In that sense, it is like the exams administered by the CFA Institute for competitors in its Chartered Financial Analyst (CFA) program.

To guarantee that these standards are kept up with, contender for the Series 26 exam must initially be sponsored by a FINRA member firm and must have previously passed either the Investment Company and Variable Contracts Products Representative exam (known as the "Series 6"), or the General Securities Representative exam (known as the "Series 7"). Likewise, competitors must likewise have breezed through the Securities Industry Essentials exam (SIE).

The Series 26 exam comprises of 110 inquiries. Up-and-comers are given 2 hours and 45 minutes to compose the exam, which is completed electronically. To pass, competitors must response no less than 70% of the inquiries accurately. Since there is no penalty for speculating, competitors ought to guarantee they endeavor all inquiries on the test.

Real World Example of the Series 26

The Series 26 covers a purposely extensive variety of subject matter, albeit the order of the inquiries are organized to cover three major point areas. The principal section connects with the management and record-keeping liabilities of experts who supervise financial sales groups, while likewise testing competitors' overall information about the securities industry as a whole.

In the second and third sections, competitors are tried on their ability to explore the compliance obligations of managers in the industry, for example, the required processes for accurately taking care of clients' accounts, and the different exposures required while marketing securities to the public. All the more comprehensively, this section incorporates inquiries concerning the ethical standards required of experts in the field, for example, how to explore conflicts of interest and how to uncover expected infringement of securities laws and regulations.

Features

• To breeze through the exam, up-and-comers must be sponsored by a FINRA member firm and must accomplish a score of 70% or greater.
• The Series 26 is a financial exam zeroing in managers of sales groups in the financial sector.
• These managers are required to guarantee that their sales groups maintain all applicable securities laws and regulations.