Starting Monday, Oct. 1, Financial Industry Regulatory Authority (FINRA) will offer a new qualification exam for prospective candidates seeking to enter or re-enter the securities industry.
The new exam, known as the Securities Industry Essentials (SIE) exam, is a multiple-choice test that aims to evaluate knowledge of fundamental securities-related topics. Anyone can take the exam, FINRA says in a news release, they are not required to have industry experience, or a job offer from a firm.
“As part of our mission to protect investors and the integrity of markets, FINRA ensures that all registered representatives working in the securities industry have the requisite knowledge to serve their clients,” says Robert Cook, president and CEO of FINRA, in a statement. “Our new exam structure will bring greater consistency and uniformity to the process for entering or returning to the securities industry. It will also provide more people the opportunity to explore career options in the securities industry.”
To become qualified as a registered rep at a FINRA-regulated firm, reps will still have to take other qualifying exams (such as the series 6 or 7 exam) in addition to the SIE. Yet, these exams have also been restructured to reflect the launch of the new SIE exam.
For instance, FINRA says that the new series 7 exam now has 125 questions, down from 250 questions, previously. The restructured approach aligns with FINRA’s goal of creating efficiencies by eliminating duplicative testing, the self-regulatory organization says.
“FINRA has eliminated duplicative testing of general securities knowledge on the representative-level exams by moving such content into the SIE,” says John Kalohn, FINRA’s vice president for testing and continuing education. “The SIE provides candidates the opportunity to demonstrate their mastery of the fundamental knowledge about the securities industry. We believe this is an important step in the process of qualifying to become registered in the securities industry.”