How To Register For The Series 24 License

What Is the Series 7 License?

The Series 7 license allows professionals to sell securities in the U.S. To obtain it, they must pass a rigorous exam covering diverse financial topics. The Financial Industry Regulatory Authority (FINRA) administers this test, and most employers in the financial services industry crave their employees obtain the Series vii license. If y'all want a find a financial advisor who has a Serial 7 certification, check out our complimentary financial counselor matching tool.

What Is the Series 7 License?

In social club to sell any type of security besides commodities and futures, financial services practitioners must pass the Series 7 Exam. Officially, it's called the Full general Securities Registered Representative Test (GSRE). Information technology covers various topics such as financial industry regulations and client communications, every bit well equally different types of securities and their associated risks.

If you're working with someone holding a Series vii license, yous can expect them to have skillful knowledge of the following topics:

Retirement plans
529 higher savings plans
Stocks
Bonds
Mutual funds
Commutation-traded funds (ETFs)
Annuities
Life insurance
Taxes
Financial industry regulations

Series 7 financial advisors and other practitioners also specialize in building diversified, risk-assessed investment portfolios for their clients. Because the Series 7 Examination weighs heavily on portfolio building and asset-allotment concepts, information technology's best to seek these professionals when considering serious investing or retirement planning decisions.

Series 7 Educational activity Requirements

What Is the Series 7 License?

Before someone can have the Series 7 Exam, they must laissez passer the Security Industry Essentials (SIE) Examination. This tests a plethora of fiscal topics, including investment products and risks, the structure of the securities market, regulatory agencies and more. The SIE Exam has four sections with a total of 75 questions. These sections are titled:

Knowledge of Uppercase Markets
Understanding Financial Products and Their Risks
Understanding Trading, Client Accounts and Prohibited Activities
Overview of Regulatory Framework

Once they pass the SIE Exam, they will proceeds eligibility for the Series 7 Exam. This examination is quite a bit longer at 125 questions, and test takers have three hours and 45 minutes to complete it. All 125 questions are multiple-pick. One time this exam is passed, the exam taker will become a Series 7-certified professional person.

Below is an overview of what's covered on the Series 7 Exam:

Reviewing clients' investment needs and goals
Recommending investments to clients
Initiating investment purchases
Transferring assets for clients
Work every bit the middleman between broker-dealers and clients

Why Is the Serial vii License Necessary?

Beyond extensive industry knowledge, fiscal professionals with Series vii certifications must alive upward to stricter standards than unlicensed ones. FINRA enforces strict regulations Series seven-licensed professionals must abide by in society to proceed their jobs and serve their clients as best they can.

Fifty-fifty earlier taking the Series seven Exam, practitioners must pass the SIE Exam. According to FINRA, this exam "assesses a candidate's knowledge of basic securities industry data, including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions and prohibited practices."

Every bit you tin encounter, those with Series 7 licenses accept strict standards to follow. These individuals can sell virtually any security. However, the Series 7 license does not permit these registered professionals to sell commodities, futures, existent manor and life insurance products.

In order to sell those types of investments and insurance, brokers need to secure other licenses.

Other Of import Financial Advisor Licenses

What Is the Series 7 License?

If you're looking to work with a financial counselor, you may be dislocated by the unlike types of licenses and certifications they hold. Below, we listing some common ones equally well equally what these credentials allow advisors to practise.

Series 31: This permits advisors to sell managed futures, which are pooled bolt futures.
Serial 26: This allows practitioners to supervise those who sell funds, variable annuities and life insurance.
Series 24: This is required to manage branch activities at a broker-dealer.
Series 6: This allows professionals to sell packaged investment products, like mutual funds, variable annuities and unit investment trusts (UITs).
Serial three: This permits brokers to sell commodity futures contracts, mostly considered amidst the riskiest publicly traded investments.

Bottom Line

When y'all're shopping effectually for a financial advisor, y'all should always seek what kind of licensing he or she holds. The Series vii license stands out in the industry, because practitioners must laissez passer 1 of the longest and virtually rigorous exams in the industry to obtain it. This license not only allows them to sell most securities, but it also means they have extensive cognition around financial topics. FINRA administers the examination. Thus, those who hold this title must alive up to strict standards when it comes to client relations.

Tips on Searching for a Financial Counselor

If you're interested in working with a local financial counselor, SmartAsset's free financial advisor matching tool can help. Go started now.
When it comes to seeking a financial advisor, licenses aren't everything. Some too have special certifications that help them stand in a higher place the pack. One of the about popular ones is the certified financial planner (CFP) designation.
E'er pay attention to an counselor's fee structure. Some make commissions based on the products they sell, while other ones earn no such commissions. These are called fee-only advisors, and they operate in your all-time interest at all times.

Javier Simon, CEPF® Javier Simon is a cyberbanking, investing and retirement skillful for SmartAsset. The personal finance writer'due south work has been featured in Investopedia, PLANADVISER and iGrad. Javier is a member of the Society for Advancing Business concern Editing and Writing. He has a caste in journalism from SUNY Plattsburgh. Javier is passionate most helping others across their personal finances. He has volunteered and raised funds for charities including Fight Cancer Together, Children's Miracle Network Hospitals and the National Center for Missing and Exploited Children.