Used to obtain licensure for selling specific financial products like life insurance, the Series 6 exam opens doors to lucrative career opportunities and empowers you to guide others towards achieving their monetary goals. Many financial services professionals utilize a Series 6 license, including investment advisors, registered representatives, or those selling variable annuities for mutual funds …
Used to obtain licensure for selling specific financial products like life insurance, the Series 6 exam opens doors to lucrative career opportunities and empowers you to guide others towards achieving their monetary goals. Many financial services professionals utilize a Series 6 license, including investment advisors, registered representatives, or those selling variable annuities for mutual funds and insurance companies. In this post, we will discuss the Series 6 from start to finish, explaining what you need to know to prepare for the exam, understand how it functions, and complete it successfully.
The Series 6 is a multiple choice exam administered by FINRA that can be taken remotely or at a test center. It is used to assess the competency of entry level mutual funds and variable annuities sales representatives, covering a number of topics including tax regulations, retirement plans, and securities registration. Passing the Series 6 exam is a qualifier for selling the following securities products:
• Mutual funds
• Variable contracts (annuities and life insurance)
• Unit investment trusts (UITs)
• Municipal fund securities (e.g., 529 plans)
Both the Series 6 and Series 7 exams are administered by FINRA and grant licenses to sell investment products in the United States, but they cater to different levels and types of products. Choosing the right one depends on your career goals and the specific investments you want to sell.
The Series 6 is ideal for entry level professionals, covering less topics compared to the Series 7 which is more advanced and over twice as long. The Series 7 exam is great for people with established finance industry experience that want to take their career to the next level and sell a wider range of products.
Because the Series 7 exam covers the same material as the Series 6 before going beyond, it’s not necessary to hold both licenses. However, many mutual fund and insurance firm advisors start with the Series 6, as it fully covers the scope of their work. You can always take the Series 7 later, using your knowledge of the Series 6 to reduce pressure and study time. This route is often advised, since the Series 6 offers enough for entry level professionals to get started while setting them up for success if or when they choose to take the Series 7.
The Series 6 exam contains content from four key areas, per FINRA’s outline:
Topic | Questions | % of Test |
|---|---|---|
Seeks Business for the Broker-Dealer from Customers and Potential Customers | 12 | 24% |
Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 8 | 16% |
Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 25 | 50% |
Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions | 5 | 10% |
Total | 50 | 100% |
Let’s go over each section in more detail:
Seeks Business for the Broker-Dealer from Customers and Potential Customers (12 questions, 24% of the Series 6 exam)
This section covers how you should go about selling your services to customers and potential customers. This includes the standards and required approvals for public communications, including advertisements and social media. It also includes prospectus requirements, which outlines how you can share information about investment opportunities to customers and which disclosures are required.
Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives (8 questions, 16% of the Series 6 exam)
This section is about how you open customer accounts and what required steps you must take. It includes what types of accounts you must inform customers about and what disclosures must be made when doing so. It also covers the process for opening customer accounts, including customer screening, know your customer (KYC), obtaining customer records of their securities holdings and other information, and the internal supervisory approval steps you must complete.
Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records (25 questions, 50% of the Series 6 exam)
This is the heart of the exam and also of what your role will be as a licensed Series 6 representative. This section requires that you are familiar with key financial terms and their consequences, including diversification, volatility, and portfolio theory. It also asks you to know basic fundamental analysis including balance sheets, annual reports, material risk disclosures, key terms, and methods of inventory valuation. Furthermore, you must understand all of the major types of investment offerings at a typical firm, including:
This section then covers the appropriate delivery of investment information to customers, intending to install care that you do not oversell or misrepresent investment opportunities. Most importantly, it covers the delivery of the right investment opportunities to the customer, also known as “suitability”. Suitability is a key topic on multiple FINRA exams, and is at the heart of what FINRA wants you to do as a licensed rep: make the appropriate recommendations for the customer based on their financial situation, goals, and the applicable laws. The factors you must consider are, per FINRA, “customer’s investment profile, including the customer’s risk tolerance, investment time horizon and investment objectives, [and] liquidity needs”.
Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions (5 questions, 10% of the Series 6 exam)
This is the nuts and bolts section of the exam, covering how to get and deliver current quotes, confirming customer transactions and compliance with all laws and regulations, and resolving errors.
Mastering these areas, especially suitability, requires dedication and time. But these terms, rules, products, and applicable laws are all going to be relevant to your day to day job (which is the idea).
Often pursued by entry level finance professionals, this is a medium difficulty test compared to others in the industry. With a recommended 60 hours of study time and a $75 test fee, the Series 6 exam is less extensive compared to the Series 7 which can take 90+ hours to study for and costs $300. However, it is slightly more challenging than the FINRA SIE, a prerequisite exam candidates must pass before registering for the Series 6 or 7.
The Series 6 takes about 1 ½ hours to complete the 50 multiple choice questions on the Series 6 exam, along with the 5 unscored pretest questions.
Passing the Series 6 requires a score of 70% or, more specifically, 35 correct answers. Although the Series 6 exam is considered a medium-difficulty test in the finance world, it is still quite challenging and has a 58% pass rate. This is why it’s highly recommended to take a preparation course like the Achievable Series 6, and give yourself ample amount of time to review the content.
To cross the finish line with your Series 6 license in hand, you’ll need to dedicate between 50-60 hours of study time, diving deep into the five product types the exam licenses you for: mutual funds, variable contracts, unit investment trusts (UITs), and municipal fund securities. Candidates should be able to demonstrate their understanding of the regulations surrounding these products, purchasing procedures, risks and rewards, and more.
Investing in quality educational materials or reputable prep courses can make all the difference when readying yourself for the Series 6. These resources help optimize your study time by showing you exactly what you need to know to pass the test exam. They can also provide structure, making it easier to set realistic goals, digest information, and stick to your study plan.
Get ready by using practice tests to familiarize yourself with the format of the Series 6 and to identify your strengths versus where you need to improve. In addition to this, try testing yourself under timed conditions to replicate the feel of the actual exam and see how fast you’re performing.
Candidates eligible for the Series 6 must have already passed the SIE exam and be sponsored by a FINRA-member firm or other applicable self-regulatory organization (SRO) member firm. This means you need to be employed by or associated with a licensed broker-dealer. Your sponsoring firm will need to submit a Form U4 to FINRA with your personal information, employment history, and other relevant details.
It’s important to understand that you cannot directly register with FINRA yourself through a Form U4. Only FINRA-member broker-dealers can file Form U4 on behalf of individuals who will be performing certain activities for the firm, such as becoming a registered representative. Once your firm submits the Form U4 and it is approved, FINRA will email you enrollment instructions. You will then be able to create an account and register for the Series 6 exam on the FINRA website.
After registering, you will need to schedule your exam appointment with the testing provider Prometric. You have 120 days from the time you register to schedule and take your exam. To find a Prometric test center near you, visit the FINRA exam section on Prometric’s website and click “Locate”. From here, you will be taken to the Proscheduler platform where you will need to select “Series 06 – Investment Co./Variable Contracts Rep” then hit “Next.” After submitting your address and ideal test taking dates, nearby Prometric centers will populate. Choose your preferred location and schedule your exam either online or by phone.
On your Series 6 test day, make sure you are fully prepared by bringing the right items with you. Various personal items are not allowed in the testing room due to security protocols including food and drinks, study materials like notebooks, and backpacks or purses. However, you should be sure to bring a valid government-issued photo ID and a calculator. Check the FINRA website or your test confirmation email for acceptable ID types and make sure to bring a basic calculator without advanced features, such as graphing or programmable calculators, as these are prohibited. You should also be sure to dress comfortably but professionally since you will be sitting for up to 1 ½ hours and uncomfortable clothes can inhibit your focus.
Your pass or fail result will be immediately displayed on screen upon completion of the Series 6 exam with Prometric. To receive the official report that contains further details about your performance on the exam, you will need to wait up to three business days for Prometric to send the results via the email you provided when scheduling your test.
If you fail the exam, you can retake it after waiting at least 30 days, but you will need to re-register and pay the exam fee again. If you retake the test and fail three times in a row, you must then wait another 180 days to qualify for another retake.
Upon receiving a passing grade, candidates must register their Series 6 license with their sponsoring broker-dealer firm for it to be official within FINRA. If you don’t register within two years of passing your Series 6, you’ll have to retake the exam. Once you’ve sent your sponsoring firm your test results and register your Series 6 license, it will then stay valid for as long as you are employed by or associated with that firm.
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