Series 6 Exam: Everything You Need To Know

The series 6 exam, also known as the Investment Company and Variable Contracts Product Representative Exam, is administered by FINRA. It is one of the most frequently taken Top off exams. When passed in connection with the SIE exam, a candidate will become licensed to represent a broker dealer in the purchase and sale of open end investment companies and variable contracts.

The majority of people who get the Series 6 license are required to pass the exam by their employer. Oftentimes, it is a condition of employment. Most individuals must  obtain a Series 6 license to function in their job. The Series 6 top off exam is for those who want to offer mutual funds to clients. Insurance companies, banks and limited broker dealers all require their agents to obtain the series 6 license

 A series 6 license will allow you to transact business in:

• Open end investment company products
• Initial offerings of closed end investment company shares 
• Variable Annuities (with a life and health insurance license) 
• Variable life insurance (with a life and health insurance license)

You will not be licensed to trade closed end funds or ETFs in the secondary market.

The Series 6 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 6 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 6 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 6 Exam is 70%. Test takers must answer 35 of 50 questions correctly.

No. The only requirement to take the series 6 exam is sponsorship.  Candidates must be sponsored by a FINRA member firm to sit to take the series 6 exam.  .

The series 6 Exam consists of questions designed to test candidates’ knowledge of the critical functions an investment company representative will be required to perform. The questions will cover a variety of investment vehicles including:

• Equities
• Corporate debt
• Mutual funds
• Investment company securities
• Real estate investment trusts (REITS)
• Annuities
• Municipal bonds
• Government securities

 In addition to the questions covering investment products, the exam will contain many questions pertaining to the following:

• • Understanding customers’ financial profile and investment objectives 
  • Verifying customer purchase and sales instructions and confirming transactions  
  • Handling and servicing customer accounts 
  • Contacting customers and potential customers
  • Issuing securities and initial public offerings
  • Securities industry rules and regulations and prohibited practices 
  • Taxation and retirement plans 

FINRA’s official series 6 exam outline is broken down into the following critical functions:

1.  Seeks Business for the Broker-dealer from Customers and Potential Customers – 12 questions
2. Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives – 8 questions
3. Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records – 25 questions
4. Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions – 5 questions

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 6 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.

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 6 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 6 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. 

All candidates must appear at an approved testing center to take the series 6 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.

Professional proctors control and watch Prometric test centers. The staff safeguard the integrity of the exam. The testing room is set up much like a computer lab you would see at a college or library. Each computer in the testing area is administering a different exam to test takers. Some individuals may be taking the SIE or Series 6 exam. While others may be taking an exam in a completely different industry.  There is no reference material of any kind in the testing area. The center provides a basic 4 function calculator and scratch paper or a dry erase tablet. Only take your appointment confirmation and a government issued ID.  A driver’s license, passport or Military ID are acceptable. Make sure your identification is valid and not expired.  The testing proctors will check your ID and take a thumbprint to verify your identity. Make sure you know where the center is. You should have clear directions. Do not add to the stress by getting lost or looking for parking. If you live in a remote area and the center is far away, you should consider staying in a local hotel. Arrive at least 20 minutes before your scheduled exam appointment.

Passing the Series 6 exams is a significant challenge. Obtaining a Series 6 license takes focus and dedication. Students should not take this test lightly. You must thoroughly prepare to take the exam and should make it a top priority. Prepare for the exam by reading a textbook completely with a highlighter. You must read the book, there are no shortcuts and students need to understand this. Carefully 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. Besides obtaining the knowledge required by the exam, you must master the application. This is done by taking as many practice questions as you can. We recommend at least 50 hours of study time. This should ensure you pass your Series 6 exam and become licensed.

For most registered representatives, it feels like your Series 6 license is transferable. In actuality, it is not. Your current registration must be terminated if you change employers.  Your Series 6 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 6 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 6 license empowers you to conduct business in investment company securities and variable contracts . Many Series 6 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 6 exam include:

• Training materials
• Testing fees
• Registration fees.

Our most comprehensive training package for the series 6 exam is $159. This comes with everything you need and includes free shipping. Other providers charge as much as $300 for similar packages.

The testing fee for the series 6 exam is $75. State registration fees vary by state and range from $50 – $250 per year.

Once you are Series 6 licensed, you must meet the continuing educational requirements. Every year your firm will send out a questionnaire. This is known as a “needs analysis”. It is sent to each  registered person. Every representative will be assigned continuing education courses to complete. Your firm may have you attend a seminar, webinar or take an online course. These must be completed to satisfy the firm element continuing education requirements.

Licensed agents must also complete annual regulatory continuing education training. These courses are  administered by FINRA. All registered individuals must complete this continuing education by December 31st. FINRA publishes the learning objectives for continuing education each October. The published courses are for the following calendar year. All courses completed  through FINRA’s continuing education portal.

The series 6 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 6 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. A life and health license is required to conduct business in variable products.  Variable annuities and variable life contracts are both securities and insurance products. Agents who wish to conduct business in variable contracts must pursue an insurance license. If they have not already done so.

We get this question a lot . The short answer is no. We strongly recommend that candidates take the SIE exam first. Without even looking at the series 6 material. Once the SIE exam has been completed, take a few days off. No more than a week. And then while the SIE material is still fresh, start preparing to pass the series 6 exam.

It is very important to choose your Series 6 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 6 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 6 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 6 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 6 study material will ensure your success on exam day. Complete with a comprehensive physical textbook, Video lectures and challenging test banks. We are so confident in our Series 6 training course. that we offer you a money back greenlight pass guarantee. Review our Series 6 Exam prep features here