Series 7

Series 7 Requirements

Since October 1, 2018, Series 7 candidates are required to take the Securities Industry Essentials (SIE) exam before sitting for the Series 7. According to FINRA, the SIE is an introductory-level exam that "assesses a candidate’s knowledge of basic securities industry information 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." If you need more information on the SIE, FINRA's SIE exam content outline provides more details.

Candidates who want to take the Series 7 exam must be sponsored by a FINRA member firm, and FINRA has other Series 7 eligibility requirements. The firm must file a Form U4 (Uniform Application for Securities Industry Registration or Transfer) for the candidate to be registered for the licensing exam. FINRA governs the activities of securities firms and registered brokers, ensuring that anyone who sells securities products is qualified and tested.

Candidates who want to take the Series 7 exam must be sponsored by a FINRA member firm, and FINRA has other Series 7 eligibility requirements.

Series 7 Exam Structure

The Series 7 is structured as follows:

1. Seeks Business for the Broker-Dealer from Customers and Potential Customers: 9 questions
2. Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives: 11 questions
3. Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets, and Maintains Appropriate Records: 91 questions
4. Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions: 14 questions

The Series 7 exam has 125 multiple choice questions, lasts 225 minutes, and cost $245. The passing score is 72%.

Prior to Oct. 1, 2018, the Series 7 exam contained 250 questions covering five major job functions. The exam duration was six hours, had no prerequisites, and cost $305. A score of 72% was required to pass.

FINRA does not provide candidates with any physical certificate as proof of exam completion. Current or potential employers who wish to view proof of completion must access this information through FINRA's Central Registration Depository (CRD).

Completion of the Series 7 exam is a prerequisite for many other securities licenses, such as the Series 24, which permits the candidate to supervise and manage broker activities.