A Comprehensive Guide to Investment Securities Licenses

Are you interested in a career in the financial industry? If so, obtaining an investment securities license is a crucial step towards achieving your goals. In this comprehensive guide, we will walk you through the process of getting a securities license and provide valuable insights into the different types of licenses available.

Steps to Get a Securities License

Before diving into the specific types of securities licenses, it's essential to understand the general steps involved in obtaining a license. Here is a step-by-step guide:

1. Get to Know FINRA and NASAA: Familiarize yourself with the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA). These regulatory bodies oversee the securities industry and set the standards for licensing.
2. Determine Whether You Should Take the SIE Exam: The Securities Industry Essentials (SIE) Exam is a foundational exam that covers basic securities industry knowledge. Depending on your career goals, you may need to take this exam before pursuing specific licenses.
3. Determine Which Securities License(s) You'll Need: Identify the specific securities license(s) required for your desired role. The most common FINRA and NASAA securities licenses include Series 6, Series 7, Series 63, Series 65, and Series 66.
4. Check Your State Requirements: Each state may have additional requirements or regulations for securities professionals. Make sure to research and comply with your state's specific guidelines.
5. Study for and Take the Exams: Prepare thoroughly for the exams by utilizing study materials, online resources, and exam prep programs. Dedicate sufficient time and effort to ensure success.
6. Pass the Exams: Once you feel adequately prepared, schedule and take the required exams. Achieving a passing score is necessary to obtain your securities license.

Types of Investment Securities Licenses

Now that you're familiar with the general steps, let's explore the different types of investment securities licenses:

Series 6

The Series 6 license allows individuals to register as a company's representative and sell certain financial products, such as mutual funds and variable annuities. It is an introductory license suitable for entry-level roles in the industry.

Series 7

The Series 7 license is a more comprehensive license that enables individuals to engage in a broader range of securities transactions. It is necessary for professionals who wish to become general securities representatives.

Series 63

The Series 63 license is often referred to as the Uniform Securities Agent State Law Exam. It assesses a candidate's understanding of state securities regulations and laws. This license is typically required in addition to other licenses.

Series 65 and Series 66

The Series 65 and Series 66 licenses are both investment advisor licenses. They allow individuals to provide investment advice and manage client portfolios. These licenses are essential for professionals offering investment advisory services.

Additional Considerations

While the above licenses are the most common, there are other licenses available depending on your specific career path. Municipal Securities Rulemaking Board (MSRB) Exams, National Futures Association (NFA) Exams, and North American Securities Administrators Association (NASAA) Exams are examples of other licenses that may be relevant to certain roles.

It's important to note that each license has its own exam requirements, study materials, and costs. Make sure to research and understand the specific details of each license you are interested in pursuing.

Conclusion

Earning an investment securities license is an important step towards building a successful career in the financial industry. By following the steps outlined in this guide and obtaining the necessary licenses, you will position yourself for professional growth and opportunities. Remember to stay updated with industry regulations and continue your education to maintain your licenses and stay ahead in the ever-evolving world of investment securities.