In the United States , the Series 7 exam , also known as the General Securities Representative Exam ( GSRE ), is a test for entry-level registered representatives , that demonstrates competency to buy or sell security products such as corporate securities , municipal securities , options, direct participation programs, investment company products and variable contracts. The Series 7 is administered by the Financial Industry Regulatory Authority (FINRA), an industry regulatory agency.
10-485: The Series 7 exam ensures a baseline level of proficiency for individuals starting their careers in the financial industry. It is particularly important for newly hired personnel who may lack prior exposure to finance-related subjects during their university education. Passing the Series 7 exam is often a requirement for other FINRA exams, including those related to options trading and managerial roles. A candidate who passes
20-571: A grant of authority from the government. In United States securities law, a self-regulatory organization is a defined term. The principal federal regulatory authority—the Securities and Exchange Commission (SEC)—was established by the federal Securities Exchange Act of 1934 . The SEC originally delegated authority to the National Association of Securities Dealers (NASD, now Financial Industry Regulatory Authority (FINRA) ) and to
30-402: Is $ 300. Self-regulatory organization A self-regulatory organization ( SRO ) is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could exist in place of government regulation, or applied in addition to government regulation. The ability of an SRO to exercise regulatory authority does not necessarily derive from
40-414: Is a three-hour, forty-five-minute exam. It is held in one four-hour session. There are 125 questions on the test. Candidates have to score at least 72% to pass. The SIE Exam and the Series 7 Exam are co-requisite exams. Average study time is between 80 and 150 hours depending on current financial knowledge. The Series 7 exam tests candidates on four functions. As of June 24, 2023, the registration cost
50-500: Is also an SRO with official, statutory status. Because of the prominence of the SROs in the securities industry, the term SRO is often used to narrowly to describe an organization authorized by statute or government agency to exercise control over a certain aspect of the industry. The National Association of Realtors (NAR) is an example of an SRO that fills the vacuum left by the absence of government oversight or regulation. The NAR sets
60-503: The Advertising Self-Regulatory Council , which is the U.S. advertising industry's self-regulatory body. In addition to setting guidelines, these programs provide third-party accountability and dispute resolution services to companies, outside and in-house counsel, consumers, and others in arenas such as privacy, advertising, data collection, child-directed marketing, and more. The law "On self-regulation"
70-1039: The national stock exchanges (e.g., the NYSE ) to enforce certain industry standards and requirements related to securities trading and brokerage. On July 26, 2007, the SEC approved a merger of the enforcement arms of the NYSE and the NASD, to form a new SRO, the Financial Industry Regulatory Authority (FINRA). In addition, Congress created the Municipal Securities Rulemaking Board (MSRB) as an SRO charged with adopting investor protection rules governing broker-dealers and banks that underwrite, trade and sell tax-exempt bonds, 529 college savings plans and other types of municipal securities. The American Arbitration Association
80-473: The 250-question Series 7 exam was replaced by the current top-off exam that is now taken in conjunction with the SIE exam. (A correlative change was made to the Series 6 exam.). In order to take the exam, an individual must be sponsored by a member firm of either FINRA or a self-regulatory organization (SRO). Employers will sponsor candidates as part of employment. There is no education requirement. The Series 7
90-497: The Series 7 exam is qualified for the solicitation, purchase and/or sale of all securities products, including corporate securities, municipal fund securities, options, direct participation programs, investment company products and variable contracts. Covered activities and products include: The corequisite is the Securities Industry Essentials (SIE) exam, a change FINRA enacted in 2018. In October 2018,
100-639: The rules for multiple listing services and how brokers use them. Another example is the American Medical Association which sets rules for ethics, conflicts, disciplinary action, and accreditation in medicine. BBB National Programs is an example of an organization that houses multiple SROs, such as the Children's Advertising Review Unit , (CARU) and the National Advertising Division (NAD), formerly known as
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