Series 6

What Is the Series 6?

The Series 6 is a securities license qualifying the holder for register as a company's representative and sell certain types of mutual funds, variable annuities, and insurance. Holders of the Series 6 license are not authorized to sell corporate or municipal securities, direct participation programs, and options. With Series 6, an individual can purchase or sell certain types of mutual funds, variable life insurance, municipal fund securities, variable annuities, and unit investment trusts.

Grasping Series 6

The Series 6 is a license looked for by experts in the financial services industry. Occupations using the Series 6 license incorporate financial advisors, retirement plan specialists, investment advisors, and private bankers. To get the Series 6 license, applicants must pass the Investment Company/Variable Contracts Products Limited Representative (Series 6) exam. The Securities Industry Essentials (SIE) exam is a corequisite for the Series 6 exam. The SIE doesn't need firm sponsorship.

The Financial Industry Regulatory Authority (FINRA) manages the Series 6 exam. It covers points, for example, mutual funds, variable annuities, securities, tax regulations, retirement plans, and insurance products. A passing grade is accomplished by accurately replying something like 35 of 50 inquiries in 90 minutes or less. Five extra inquiries are unscored for a total of 55 inquiries. The test costs $40, and it is administered by means of computer with no reference material permitted.

Applicants customarily took Series 6 exams in person at Prometric test centers. Be that as it may, FINRA started offering tests, including the Series 6 exam, online in 2020. Prometric additionally administered the online tests. Be that as it may, up-and-comers or their employers needed to introduce specialized software on their computers and give cameras. Note, notwithstanding, that a Series 6 terminates two years after employment except if under special conditions such a military sending.

Benefits and Disadvantages of Series 6

The Series 6 exam is frequently compared to the Series 7 exam. The Series 6 costs substantially less money and has a more limited test covering less material. Nonetheless, a Series 6 license is all that a few financial advisors, investment advisors, and retirement planners need. Such advisors may possibly require a Series 6 license on the off chance that they just sell insurance, annuities, and certain types of mutual funds, not individual stocks.

The best weakness of a Series 6 is that holders are not authorized to sell exchange-traded funds (ETFs), or stocks and bonds, as they are viewed as corporate securities. That is a huge drawback since ETFs generally offer lower fees and are progressively supplanting mutual funds as the preferred investment vehicles among retail investors. Advisors and retirement planners who need to sell ETFs must get a Series 7 license, which requires taking a more extended and more complete exam that costs more money.

Requirements for Series 6

Up-and-comers must be sponsored by a member of FINRA or a self-regulatory organization (SRO) to take the exam. There is no essential for the exam, however the Securities Industry Essentials (SIE) exam is a corequisite for Series 6. Before Oct. 2018, the exam was 100 inquiries and didn't have the SIE corequisite.

After getting a passing grade, competitors must then register with FINRA through their supporting firm to execute authorized securities. Holders of the Series 6 are viewed as limited representatives of their supporting firm. As a limited representative, they can sell certain types of mutual funds, variable annuities, and variable life insurance.

Series 6 Exam

As framed by FINRA, the Series 6 exam covers four specific segments.

• "Looks for Business for the Broker-dealer from Customers and Potential Customers," which is 12 inquiries — covering 24% of the exam.
• "Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives" is eight inquiries — covering 16% of the exam.
• "Furnishes Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets, and Maintains Appropriate Records" is half the exam at 25 inquiries — covering half of the exam.
• "Gets and Verifies Customers' Purchase and Sales Instructions; Processes, Completes, and Confirms Transactions" is five inquiries — covering 10% of the exam.

Continuing Education

Licensees must satisfy continuing education requirements and receive sponsorship from a FINRA registered company to keep their Series 6 licenses.

FINRA's continuing education program incorporates two elements: a regulatory element and a firm element. On the regulatory side, FINRA expects licensees to complete a computer-based training session in no less than 120 days of the second anniversary of registration. FINRA likewise requires a computer-based training session at regular intervals after that. The firm element requires broker-dealers to lay out and keep a continuing education program.

Features

• Series 6 exams were customarily stepped through in person at examination centers, yet FINRA started offering them online in 2020.
• Up-and-comers must be sponsored by a member of FINRA or a self-regulatory organization (SRO) to take the exam.
• The Series 6 is a securities license qualifying the holder for register as a company's representative and sell certain types of mutual funds, variable annuities, and insurance.
• Competitors must finish the Series 6 exam to get a Series 6 license, and the Securities Industry Essentials (SIE) exam is a corequisite for the Series 6 exam.
• The best weakness of a Series 6 license is that holders are not authorized to sell exchange traded funds (ETFs).