Ultimate Guide to All FINRA Licenses – From Entry to Management

📘 Ultimate Guide to All FINRA Licenses – From Entry to Management

A FINRA license opens the door to a wide variety of roles in the financial industry, from entry-level positions to senior management. Whether you’re starting your career or looking to expand your expertise, understanding the different FINRA licenses and their requirements is essential for success.

Here’s your ultimate guide to FINRA licenses, broken down by career stage:

🏁 Entry-Level FINRA Licenses

These licenses are designed for individuals just starting out in the securities industry, typically involved in sales and client-facing roles.

1. Securities Industry Essentials (SIE) Exam

• What it Covers: Basic concepts in securities, regulations, markets, and ethics.
• Who Needs It: Required for anyone looking to enter the securities industry.
• Purpose: The SIE is a prerequisite for further FINRA exams, such as the Series 6, Series 7, and Series 63.

2. Series 6 – Investment Company and Variable Contracts Products Representative

• What it Covers: Mutual funds, variable annuities, unit investment trusts (UITs).
• Who Needs It: Professionals selling mutual funds or variable products.
• Purpose: Qualifies you to sell specific investment products, including mutual funds and annuities.

3. Series 7 – General Securities Representative

• What it Covers: Stocks, bonds, options, ETFs, mutual funds, and more.
• Who Needs It: Those who want to engage in general securities sales (e.g., stocks, bonds, options).
• Purpose: The Series 7 is one of the most comprehensive exams and qualifies you to sell a wide variety of securities.

4. Series 63 – Uniform Securities Agent State Law Exam

• What it Covers: State securities regulations and ethical business practices.
• Who Needs It: Required in most states for individuals who wish to sell securities within that state.
• Purpose: Ensures individuals understand state-level laws governing securities sales.

5. Series 65 – Uniform Investment Adviser Law Exam

• What it Covers: Financial planning, portfolio management, retirement plans, tax laws.
• Who Needs It: Required for investment advisers offering financial advice or managing client portfolios.
• Purpose: Qualifies individuals to act as investment adviser representatives.

📈 Mid-Level FINRA Licenses

These licenses are typically aimed at individuals who have some experience in the industry and are looking to advance their roles in areas like management, advisory services, or investment banking.

6. Series 24 – General Securities Principal

• What it Covers: Supervision of sales and trading activities, compliance, and market-making activities.
• Who Needs It: Those wishing to take on a supervisory or managerial role within a securities firm.
• Purpose: The Series 24 qualifies individuals to supervise other brokers and registered representatives.

7. Series 66 – Uniform Combined State Law Exam

• What it Covers: A combination of Series 63 and Series 65, covering state regulations, investment adviser regulations, and client suitability.
• Who Needs It: Typically required for professionals who wish to be both a securities agent and an investment adviser.
• Purpose: Combines two important exams into one for those working in dual roles as a broker-dealer and investment adviser.

8. Series 53 – Municipal Securities Principal

• What it Covers: Supervision and management of municipal securities.
• Who Needs It: For professionals wishing to supervise municipal securities dealers.
• Purpose: Supervises compliance and trading in municipal securities.

9. Series 79 – Investment Banking Representative

• What it Covers: Investment banking activities, including mergers and acquisitions, financial analysis, and capital raising.
• Who Needs It: Investment bankers who handle M&A transactions and other securities-based deals.
• Purpose: Required for professionals who want to provide advice on securities transactions and assist with corporate financing.

🏆 Advanced/Management-Level FINRA Licenses

These licenses are designed for professionals taking on leadership roles and responsible for high-level oversight in areas like compliance, trading and corporate finance.

10. Series 27 – Financial and Operations Principal

• What it Covers: Financial operations, reporting, and compliance within securities firms.
• Who Needs It: For professionals overseeing the financial operations of a firm.
• Purpose: Supervises the firm’s financial and operational functions, including regulatory reporting.

11. Series 28 – Introducing Broker-Dealer Financial and Operations Principal

• What it Covers: Operational and financial responsibilities for introducing brokers.
• Who Needs It: For individuals who supervise operations at firms that introduce clients to clearing brokers.
• Purpose: Ensures firms comply with financial and operational rules.

12. Series 39 – Direct Participation Programs Principal

• What it Covers: Supervision and management of direct participation programs (DPPs), such as real estate and oil and gas investments.
• Who Needs It: Required for individuals managing DPPs or private placement activities.
• Purpose: Supervises activities related to limited partnerships and other DPP offerings.

13. Series 10 – General Securities Sales Supervisor

• What it Covers: Supervision of trading and sales activities in a general securities firm.
• Who Needs It: Those supervising trading desks or managing sales personnel at securities firms.
• Purpose: Gives individuals the authority to supervise sales personnel and ensure compliance with rules.

📈 Becoming Fully Registered and Taking on Management Roles

To move from an entry-level position to more senior management roles, you may also need to earn additional licenses depending on the specific type of securities and services you’re providing. Advanced Series 24 and Series 27 licenses are necessary for managing and overseeing compliance, operations, and financial reporting.

📘 Ready to start your journey with FINRA certification?
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