Series 22 Exam: Everything You Need To Know

The series 22 exam is the Direct Participation Programs Representative Exam. The test is  administered by FINRA. It assesses understanding of the information needed to engage in the sale of pass through investments.

A Series 22 license representative may conduct  business in the direct offering of :

• Limited partnerships
• S corporations
• DPPs
• and the other primary offerings

FINRA issued guidance relating to the types of products that a series 22 representative may recommend to clients.  Effectively, FINRA said that a series 22 licensed agent can transact business in the primary offering of investments that provide for a flow through of tax benefits to investors.

The Series 22 Exam is presented in a multiple choice format. Each question will have four possible answers presented in A B C D format. The exam is designed to test the candidates’ mastery of general securities industry knowledge. Candidates must answer every question on the exam and will not be allowed to proceed to the next question until an answer has been selected.

The Series 22 Exam consists of 50 multiple-choice questions that must be answered and completed. The exam has a time limit of 1 hour and 30 minutes. In addition to the 50 scored questions, each series 22 exam will contain experimental questions. These questions are not identified during the test. Nor do they count towards the candidate’s final score. Each exam provides additional time for test takers to answer these questions.

The passing score for the Series 22 Exam is 70%. Candidates must answer 35 of the 50 questions correctly. 

The test provides enough time for candidates to answer each question presented. The 1 hour and 30 minute time limit translates into 1.8 minutes per question. Test takers who have challenges interpreting questions, may find themselves pressed for time. Rushing to answer every question has a negative impact on performance. Ensure you have the ability to complete the test in the time allotted. To do this you must take 50-question practice tests. Taking series 22 practice exams is a big part of any candidate’s exam preparation. The questions presented are challenging. Students must have a deep understanding of the critical information required to pass.

Series 22 Exam questions test candidates’ knowledge of the critical functions. These are the functions a direct participation representative must perform. The questions will cover a variety of direct participation programs and customer related information. The exam will contain many questions on the the following topics:

• Retail customer accounts
• Institutional customer accounts 
• Retirement accounts 
• Automated client account transfers 
• Required minimum distributions 
• RVP / DVP accounts 
• Issuing securities 
• Registered and unregistered offerings
• Sponsored offerings
• Offering documents  
• Private placements
• Limited partnerships 
• S corporations
• Delaware statutory trusts
• Real estate programs 
• Entertainment programs 
• Oil and gas programs 
• Cattle and livestock programs
• Tax credits and deductions 
• Amortization and depletion allowances 

FINRA’s Series 22 Exam outline is organized into the critical functions of a Series 22 limited registered representative. FINRA breaks down the Series 22 content as follows:

1. Seeks Business for the Broker-dealer from Customers and Potential Customers – 17 questions
2. Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives – 4 questions
3. Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records – 27 questions
4. Obtains and Verifies Customers’ Purchase Instructions and Agreements; Processes, Completes and Confirms Transactions – 2 questions

The series 22 exam is a challenging test focused on the offering of direct participation programs. Each candidate will have a time of 90 minutes to complete this 50-question exam. A comprehensive understanding of real estate, oil and gas and other direct participation programs is key to passing this test.

All candidates must appear at an approved testing center to take the series 22 exam. Prometric test centers are available throughout the US. In fact, Prometric has more than 3,000 test centers.  Many exam centers are open 7 days a week. Students may schedule the exam at any location on any day that the center is open. To schedule an exam appointment, visit the prometric website.

You will receive your result of the exam immediately upon completion. Your results are displayed on the screen. You will get a certified copy of the results from the exam center. The passing score for the series 22 exam is 70%. Candidates who pass will not receive a numerical score. The exam report only states that the student achieved a passing grade. This is evidence that the student passed the series 22 exam. Students who do not achieve a passing score receive a numeric score for the exam. A range of the performance in each scored section is included in the report.

Students who do not pass the exam must wait 30 days before retaking the exam. During this time it is crucial to maintain the current level of proficiency. Make a detailed account of the exam. Make notes on the entire experience, especially areas of difficulty. A second unsuccessful attempt will result in another 30 day waiting period. A third unsuccessful attempt results in a 6 month waiting period

If your primary function is going to be offering direct participation programs, the  Series 22 exam is the best option for you. It is a much smaller exam and focuses only on the business of direct participation programs. The Series 7 Exam is a much larger test and will require candidates to have mastered the knowledge of all general securities products. Including options in municipal bonds.

For most registered representatives, it feels like your Series 22 license is transferable. In actuality, it is not. Your current registration must be terminated if you change employers.  Your Series 22 registration is terminated by your current FINRA member firm. Your former employer, the firm that you are leaving, will fill out and submit a Form U5 to FINRA. This ends your employment and your registration with that firm. When you arrive at your new firm you must fill out and submit a new Form U4. This begins your registration with your new firm. Your Series 22 license becomes active at your new firm upon receiving notice from FINRA. Your state registrations must also be terminated and renewed. This will be required in each state where you conduct business.

You must make an investment in your professional development. Your Series 22 license empowers you to conduct business in all pass trough securities. Many Series 22 licensed representatives enjoy lucrative and successful careers. If you have to pay out of pocket, the costs are relatively low. This is true compared to other certifications and college expenses. Some employers pick up or reimburse the costs.  The cost to take the series 22 exam include:

• Training materials
• Testing fees
• Registration fees.

Our most comprehensive training package for the series 7 exam is $259. This comes with everything you need and includes free shipping. 

The testing fee for the series 22 exam is $60. State registration fees vary by state and range from $50 – $250 per year.

The series 22 exam is a top off exam. When combined with the SIE  exam, you will be licensed to represent a broker dealer.  Additionally, most states require agents to pass the series 63 license exam. The series 63  is needed to conduct business with state residents. Think of your Series 22 license as your product license. It is your license to represent your employing broker dealer. Your series 63 license is your license to transact business with your clients or with people. To be fully licensed you will need to to pass the SIE, Series 22 & 63 exams.

It is very important to choose your Series 22 study material carefully. Quality study material produced by a professional level publisher is key. At a minimum your training materials should contain:

• A comprehensive textbook

• Well produced video training classes

• Challenging test banks

Always start with the textbook. Our Series 22 textbook is the foundation of our learning system. This book has everything you need to be successful.  Our series 22 textbook is comprehensive and easy to follow. We strongly recommend that every student read the book completely. Take notes on key points. This will ensure you know more than the basics, it will ensure you know the facts. 

Our series 22 video lectures follow our textbooks chapter by chapter. Each lecture provides more details on the content contained in the reading. Different examples show you how the concepts are tested. Best of all, we include feedback from thousands of actual series 22 test takers. This will help you master the material. Make sure you watch each video lecture to ensure complete understanding. Every video lecture is followed by a quiz. This tests your immediate comprehension of the material.

From there move to the practice tests. Take topic focused custom quizzes. Go back to the videos and chapters in the textbook to firm up areas of weakness.  Now you are ready to take simulated final exams.  Take as many as you can and keep track of your results. The more you practice the more prepared you will be. You should be scoring approximately 80% on your finals prior to sitting for the real series 22 exam. 

Our Series 22 study material will ensure your success on exam day. Complete with a comprehensive physical textbook, Video lectures and challenging test banks.  Review our Series 22 Exam prep features here