Is the SIE Exam Required by All Firms?
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
🏛️ Is the SIE Exam Required by All Firms?
The Securities Industry Essentials (SIE) Exam is the first step for anyone seeking to work in the U.S. securities industry. But is it required by all firms? The short answer is yes—with a few important details to understand depending on the role you’re pursuing.
📚 What Is the SIE Exam?
The SIE Exam is a FINRA-administered, entry-level exam that tests basic knowledge of:
- Securities industry structure
- Regulatory agencies and their functions
- Types of products and risks
- Fundamental trading and customer account concepts
- Ethical standards and prohibited practices
It’s designed to ensure that all new entrants have a foundational understanding of how the industry operates before they take specialized licensing exams like the Series 6, 7, 63, 65, or 66.
✅ Who Is Required to Take the SIE Exam?
- New industry entrants: Anyone who has never been registered with a FINRA-member firm must pass the SIE.
- Individuals seeking to become registered representatives: Candidates for licenses such as Series 6, Series 7, Series 79, and others must first pass the SIE.
- College students or career changers: Anyone considering a career in securities can take the SIE before being hired.
🏦 Are All Firms Requiring the SIE?
| Firm Type | SIE Requirement? |
|---|---|
| Broker-Dealers (FINRA members) | ✅ Yes |
| Investment Advisers (SEC-registered only) | ❌ Not necessarily |
| Banks offering brokerage services | ✅ Yes (for brokerage roles) |
| Insurance companies selling variable products | ✅ Yes (for securities sales roles) |
Key Point:
Firms regulated by FINRA, the MSRB (for municipal securities), or offering securities must ensure that representatives have passed the SIE along with the appropriate “top-off” licensing exam.
⚖️ Exceptions and Special Cases
- Investment advisers (IAs) who only provide fee-based advice (not selling securities) usually require Series 65, but not necessarily the SIE.
- Operations, technology, and administrative roles that do not involve securities solicitation or customer interactions may not require the SIE.
- Previously registered individuals (within the past 4 years) do not need to retake the SIE.
🧠 Why Firms Prefer SIE Holders
- Reduces onboarding time for new hires
- Ensures a basic level of regulatory knowledge
- Improves exam pass rates for specialized licenses
- Signals candidate commitment to a securities career
Many firms now prefer or require candidates to have already passed the SIE before even interviewing.
✅ Get a Head Start on Your Financial Career
Pass the SIE exam with expert video lessons, practice quizzes, and full exam simulations—all designed to help you build a strong foundation and move quickly to your next license.
Start preparing today at finra-exam-mastery.com