One important benefit of a Series 6 license offers confidence in a knowledgeable representative who manages the investment monies of clients. A financial representative needs to know how the securities markets work. The SEC believes that financial representative have a duty to make the best decision for his or her clients.
This license serves not only to educate and train the fiduciary agent but also insures your funds are not mishandled. It is imperative to understand the inner workings of security trading on the various exchanges.
FINRA stands for the Financial Industry Regulatory Authority. This agency holds the responsibility for governing business between brokers, sellers and the public investors. This regulatory body is a combined agency of the National Association of Securities Dealers and the regulation committee of the New York Stock Exchange. FINRA issues the license for those interested in selling financial products such as mutual funds and variable annuities.
The license exam consists of 100 questions. The multiple-choice exam is 135 minutes. The test is given Monday through Saturday at Prometric Test Centers. The exam covers these topics:
- Mutual Funds
- Variable Annuities
- Retirement Plans
- Insurance Products
- Investment Policies
- Securities Markets and Regulations
- Customer Accounts and Orders
An advantage of holding the Series 6 license is detailed knowledge of the areas of marketing as well as operating and servicing customer accounts. Detailed knowledge of the financial products, securities and tax laws, securities markets and economics is imperative to ensure that a broker will handle investments properly.
An important fact to note is that a person must be sponsored by a financial company that is a member of FINRA in order to sit for the license. This means that clients are not subjected to just anyone who wants to sell financial products.
This license offers credibility, prestige and responsibility. The responsibility of analyzing and monitoring client funds has great rewards. The salary for someone new to the industry is over $50,000 per year. After several years, income can reach as high as $175,000 per year.
The Series 6 license is an important part of the securities industry that gives clients confidence in the financial professionals. While the integrity of any person is not guaranteed to be above board, this license does instill a level of confidence for clients who invest in financial products. Whether you are looking to take the exam or need information on what is required of those who sell financial products, the Series 6 license is very important.