What is the Series 6 Exam?
In the United States, the investment company products/variable life contracts representative exam, is normally referred to as the Series 6 exam. Candidates passing this multiple-choice test are licensed to sell a restricted set of securities products:
- Mutual funds
- Closed-end funds on the initial offering only
- Unit investment trusts
- Variable Annuities
A Series 6 registered individual is not a stockbroker since Series 6 license owners cannot sell stock, other corporate securities, direct participation programs (DPPs), or option commodities.
This test is administered by the Financial Industry Regulatory Authority (FINRA). In order to take the test, an applicant must be backed by an affiliate firm of either FINRA or a self-regulatory organization (SRO).
Many students find that using test preparations books help to improve their scores.
Series 6 Exam Format
|Regulatory fundamentals and business development|
|Evaluates customers’ financial information, identifies investment objectives, provides information on investment products, and makes suitable recommendations|
|Opens, maintains, transfers and closes accounts and retains appropriate account records|
|Obtains, verifies, and confirms customer purchase and sale instructions|
Series 6 Exam Scoring Structure
Test takers are allowed 2 hours and 15 minutes to complete 100 multiple choice problems. The passing score is 70%, and individuals who fail this test must wait thirty days before taking it again.
Following a well-established procedure known as standard setting, FINRA governs the passing score for the test based on a number of reasons including industry trends, historical test performance and assessments of the content difficulty by of a board of industry professionals with the designated registration. For the Series 6 test, the passing score is 70%. This passing score replicates the competency needed to hold the designated registration.
All applicant exam scores have been placed on a shared scale using a statistical adjustment procedure known as equating. Equating scores to a shared scale accounts for the slight differences in difficulty that may exist among the different groups of test items that applicants receive. This allows for a fair contrast of scores and guarantees that every applicant is held to the same passing standard regardless of which set of test items he or she received.
On the day of the test, applicants will receive an account of their test grades both on screen and in paper form at the end of their test sitting. The score report will designate pass/fail status and a score profile signifying performance based on each major subject area covered on the test. It is suggested that applicants who fail the test review the material provided on the score report, as they may want to put emphasis on the areas that they performed poorly on when preparing to retake the exam. For security reasons, the test and specific items are not accessible for review after taking the test.
Series 6 Exam Availability
The exam administrator will provide whiteboard/dry erase marker and basic calculators to the applicants, which must be given back to the exam center manager at the end of the testing sitting. Some exam problems involve calculations. Only the provided calculators may be operated during the test.
The test may contain problems that necessitate the use of exhibits (e.g., charts, graphs, tables). If so, the problems will designate when to refer to a display.
Applicants are not allowed to bring any reference materials to testing sittings. Severe consequences are imposed on applicants who cheat or attempt to fraud the FINRA administered tests.
Firms must catalogue any individual involved in the securities business of the company by filing the proper registration application online through the Central Registration Depository (Web CRD) to become listed with FINRA, the proper authorities and/or self-regulatory establishments. After registration, a 120-day window will be accessible for the applicant to schedule an appointment to take the prerequisite qualification test(s).