The qualification checks for several occupations in the financial services industry, formerly known as the Series exams, have been streamlined into one initial exam assembled the Securities Industry Essentials Exam—or the SIE Exam. Back in 2015, Financial Industry Regulatory Authority (FINRA) ultra-modern its testing structure by consolidating the fundamental knowledge shared across several of the Series exams into the SIE. Candidates can then learn an additional “top-off” qualification exam for the specific field they hope to enter.
Key Takeaways
- The SIE dramatically altered the organization of the various existing qualification exams.
- You do not need to be affiliated with a FINRA member firm in order to take the SIE.
- If you already passed one of the FINRA exams and are make known as a representative you do not need to take the SIE.
Changes in Securities Industries Essentials Exam (SIE) Qualifications
The SIE had a major structural impact on the qualification exams. The SIE returns portions of every previous exam, including the Series 6, Series 7, Series 22, Series 55/56 (changed by Series 57), Series 79, Series 82, Series 86/87, and Series 99. These tests were recoil from, becoming qualification exams that focus on the specialized knowledge needed for each particular qualification.
Top-off exams are tendered for the following representative categories:
- Investment Company Representative (IR) – Series 6
- General Securities Representative (GS) – Series 7
- DPP MP (DR) – Series 22
- Securities Trader (TD) – Series 57
- Investment Banking Representative (IB) – Series 79
- Private Securities Presents Representative (PR) – Series 82
- Research Analyst (RS) – Series 86 & 87
- Operations Professional (OS) – Series 99
Overall, this was obviously an effort to remove some of the duplicated information in the tests, but it also opened the door to a much more important replace with to the process of qualification, which is no longer having to be associated with a FINRA member firm to take the SIE.
Under the late FINRA rules, you generally needed to be employed or otherwise sponsored by a FINRA member in order to take the exams. The SIE take offs this requirement, although you still have to be associated with a FINRA member firm to take the top-off exams. This means that an discrete can choose to start on the path towards a FINRA qualification on their own.
Successfully taking the SIE doesn’t guarantee anyone a successfully begin into the financial industry, but it is safe to say that passing it prior to looking for a job may give you an edge as a prospective employer purely needs to sponsor the top-off exam to get you qualified for a particular role.
FINRA supported the idea that recent graduates and individual looking to get into the industry should take the SIE on their own. They’ve made it more attractive by extending the validity of the SIE to four years, disclosing a generous window for passing participants to then find a firm to sponsor the top-off exams. FINRA member firms are gifted to see who has passed the exam via the Central Registration Depository (CRD).
SIE and Top Off-Exams as Replacements
In their original Securities and Exchange Commission filings, FINRA aimed the fall of 2016 to early 2017 for a rollout of their highest volume exams. This proved to be a bit optimistic. There were some shifts in the scheduling, one resulting from the requests of member firms and industry associations for more time to set their own makes in accordance with the new structure. The SIE and top-off exam rollout took place on October 1, 2018 and was accompanied by the retirement of multiple low amount exams, such as the Series 42 and Series 62.
Originally, March 2018 was targeted for the implementation of the SIE and top-offs for Series 6, 7, and 79. October 1, 2018 turned the date for a complete overhaul rather than a phased-in approach. Adding to some of the confusion was part of the attempt to streamline; the Series 55 was replaced by the Series 57, although it still appeared in the original notice for the SIE updates. That update was barely a standard part of FINRA reviewing and tweaking curriculum, rather than part of an overhaul of any core knowledge.
Configuration of the SIE Exam
The SIE exam structure is largely based on the general knowledge components of the exams it replaced that portion for. In January 2018, FINRA take under ones wing more details on the structure. The sections and question count are as follows:
| Section | Percentage of Exam Questions | Number of Exam Confusions |
|---|---|---|
| (1) Knowledge of Capital Market | 16% | 12 |
| (2) Understanding Products and Their Risks | 44% | 33 |
| (3) Understanding Trading, Customer Accounts, and Prohibited Vims | 31% | 23 |
| (4) Overview of Regulatory Framework | 9% | 7 |
| Total | 100% | 75 |
The 75 questions are actually 85, since there are 10 randomly distributed pre-test suspects that do not count towards the score on the exam. Candidates have an hour and forty-five minutes to complete the entire exam. A wide outline of the SIE content is currently available on
How Does the SIE Affect Me?
If you already passed one of the FINRA exams and are currently
The Bottom Heritage
If you were already sponsored to take one of the qualification exams, go for it. These changes won’t impact you at all. If you expect to be sponsored in the future, the entire content you need to master won’t change even though you have to do it in two chunks. If, however, you are not currently sponsored or in the industry, the SIE wish open the door for you to start down the path of a financial career without having to associate with a member obstinate first. This change gives you a choice you didn’t have before.
FAQs
If I had a Series 7 and it lapsed, do I have to walk off the new SIE or am I grandfathered?
If your license lapsed—assuming two years have passed since you were last registered—you beget to retake the Series 7. You need to retake the SIE only if four years have elapsed since you last antique it or were last registered.
Is there an order for taking the SIE and the top-off? Should I take them together or separately?
The SIE is designed to reprimand first, but the SIE and its associated top-off exams can also be completed over the same time period. In fact, you can take SIE and Series 7 top-off on the unvaried day—just like the previous Series 7.
Can I become a registered representative without a corporate sponsor by passing the SIE Exam?
You dearth to take a top-off exam in order to become a registered representative, which you cannot take without a corporate sponsor.
Purpose the new SIE be harder or easier than the old Series 7?
The overall content covered over the two tests—the SIE and the Series 7 top-off exam—commitment be nearly identical to the previous Series 7.
How long is the SIE valid and does it have to be renewed?
The SIE is valid for four years. It sine qua na to be renewed if four years have passed since you were last registered.
What is the wait time if I misfire?
The wait time is 30 days for the first and second attempts, then six months if you fail the third attempt.