Series 26 Exam: Everything You Need To Know

The Series 26 Exam is the Investment Company Products and Variable Contracts Principal Exam. The exam is administered by FINRA. It assesses understanding of the information needed to be a licensed Limited Principal

A Series 26 license takes your financial services career to the next level.  You must get a Series 26 license if you:

• Become a department supervisor for your investment company broker dealer
• Become the manager of an OSJ for an investment company broker dealer 
• Want to earn overrides on the production of series 6 agents
• Work in compliance 
• Supervise or train series 6 agents

Many individuals must get the series 26 license to function in their job.

A series 26 license  allows you to move up the corporate ladder. And to supervise business in variable contracts and open end investment companies. Once series 26 licensed, you may supervise registered persons.  Series 6 registered persons must be supervised by a series 26 licensed principal. A series 26 license also allows you to earn overrides on the production of the agents you supervise. As a series 26 licensed limited principal you will may review and approve:

• retail communication
• new accounts
• orders

The Series 26 Exam consists of 110 scored multiple-choice questions. The exam has a time limit of 2 hours and 45 minutes.  Each Series 26 exam will contain experimental questions. As a result, the total number of questions will be 115-120. These questions are not identified during the test. Nor do they count towards the candidate’s final score. Each exam provides more time for test takers to answer these questions.

The passing grade for the Series 26 exam is 70%. Test takers must answer at least  77 of 110 questions correctly.

Each test provides enough time for candidates to answer every question presented. The time limit on the series 26 exam is 2 hours and 45 minutes. This translates into 1.5  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 150 question  simulated exams.Taking 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.

The Series 26 Exam tests the candidates’ knowledge of critical functions.  These are the functions a limited securities principal must perform. The questions will on the series 26 will cover:

• Hiring Employes 
• Form U4, U5 & U6
• Registration Requirements
• Continuing Education Requirements
• Outside Business Activities
• Private Securities Transactions 
• Political Contributions
• Annual Compliance Meetings 
• Anti-money Laundering (AML)
• New Product Training 
• Broker Dealer FInancial Responsibilities
• Retail Communications 
• Customer Complaints 
• Branch Offices & OSJs
• The Role of the Principal

The FINRA official outline breaks down the exam as follows:

1. Personnel Management Activities and Registration of the Broker-Dealer – 16 Questions
2. Supervises Associated Persons and Oversees Sales Practices – 49 Questions
3. Oversees Compliance and Business Processes of the Broker-Dealer and its Offices – 45 Questions

The series 26 exam is a challenging exam. The information tested goes way beyond the topics tested on the series 6 exam. Many people who sit for the series 26 license, took their series 6 many years ago and are not in “test mode”. As a result most people  need to relearn a lot of the information from the series 6. Obtaining a Series 26 license takes focus and dedication.  Students should not take this test lightly. You must prepare to take the exam and should make it a top priority. Start by reading a textbook completely with a highlighter. You must read the book, there are no shortcuts and students need to understand this. Watch each video class that corresponds to the chapters in the book. This will provide you with more information on the concepts covered in each chapter. You must clear your schedule, shut off your phone and focus. In addition to the knowledge required,  you must master the application. Do this by taking thousands of practice questions. We recommend at least 60 hours of study time for the series 26 exam. This should ensure you pass.

If you are not sure of the answer to this question now, you will be once you prepare for the exam. The answer is that while it feels like your series 26 license transferable, in actuality it is not. To change firms, your series 26 license must be 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 will terminate 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 26 license  becomes active at your new firm upon receiving notice from FINRA.  As a series 26 licensed professional it may be part of your job description to sign and submit U4s and U5s to FINRA.

All candidates must appear at an approved testing center to take the Series 26 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 must make an investment in your professional development. Your Series 26 license qualifies you as a general securities principal. Many Series 26  licensed principals 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 26 Exam include:

• Training materials
• Testing fees
• Registration fees.

Our most comprehensive training package for the Series 26 Exam is $279. This comes with everything you need and includes free shipping. Other providers charge as much as $500 for similar packages.

The testing fee for the Series 26 exam is $150. 

It is very important to choose your Series 26 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 26 textbook is the foundation of our learning system. This book has everything you need to be successful.  Our textbooks are comprehensive and easy to follow. We strongly recommend that every student read the books completely. Take notes on key points. This will ensure you know more than the basics, it will ensure you know the facts. 

Our Series 26 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 26 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. Take as many as you can and keep track of your results. The more you take, the more prepared you will be.

Our Series 26 training materials come with our greenlight money back guarantee. Review our Series 26 Exams prep features here