Securities Industry Essentials (SIE) Exam

The qualification tests for several occupations in the financial services industry, formerly known as the Series exams, have been streamlined into one initial exam called the Securities Industry Essentials Exam—or the SIE Exam. Passing this exam qualifies you to pursue a career in the financial services industry.

Back in 2015, Financial Industry Regulatory Authority (FINRA) streamlined its testing structure by consolidating the fundamental knowledge shared across several of the Series exams into the SIE. Candidates can then take an additional "top-off" qualification exam for the specific field they hope to enter.

The SIE had a major structural impact on the qualification exams. The SIE replaces portions of every previous exam, including the Series 6, Series 7, Series 22, Series 55/56 (replaced by Series 57), Series 79, Series 82, Series 86/87, and Series 99. These tests were shrunken, becoming qualification exams that focus on the specialized knowledge needed for each particular qualification.

Top-off exams are offered for the following representative categories:

Overall, this was clearly an effort to remove some of the duplicated information in the tests, but it also opened the door to a much more important change to the process of qualification, which is no longer having to be associated with a FINRA member firm to take the SIE.

Under the former FINRA rules, you generally needed to be employed or otherwise sponsored by a FINRA member in order to take the exams. The SIE removes this requirement, although you still have to be associated with a FINRA member firm to take the top-off exams. This means that an individual can choose to start on the path towards a FINRA qualification on their own.

Successfully taking the SIE doesn't guarantee anyone a successfully break into the financial industry, but it is safe to say that passing it prior to looking for a job may give you an edge as a prospective employer only needs to sponsor the top-off exam to get you qualified for a particular role.

FINRA supported the idea that recent graduates and people looking to get into the industry should take the SIE on their own. They’ve made it more attractive by extending the validity of the SIE to four years, giving a generous window for passing participants to then find a firm to sponsor the top-off exams. FINRA member firms are able to see who has passed the exam via the Central Registration Depository (CRD).

In their original Securities and Exchange Commission filings, FINRA targeted the fall of 2016 to early 2017 for a rollout of their highest volume exams. This proved to be a bit optimistic. There were several shifts in the scheduling, one resulting from the requests of member firms and industry associations for more time to set their own processes in accordance with the new structure. The SIE and top-off exam rollout took place on Oct. 1, 2018 and was accompanied by the retirement of multiple low-volume exams, such as the Series 42 and Series 62.

Originally, March 2018 was targeted for the implementation of the SIE and top-offs for Series 6, 7, and 79. Oct. 1, 2018 became the date for a complete overhaul rather than a phased-in approach. Adding to some of the confusion was part of the attempt to modernize; the Series 55 was replaced by the Series 57, although it still appeared in the original notice for the SIE updates. That update was simply a standard part of FINRA reviewing and tweaking curriculum, rather than part of an overhaul of any core knowledge.

The SIE exam structure is largely based on the general knowledge components of the exams it replaced that portion for. In January 2018, FINRA provided more details on the structure. The sections and question count are as follows:

The 75 questions are actually 85, since there are 10 randomly distributed pre-test questions that do not count towards the score on the exam. Candidates have an hour and forty-five minutes to complete the entire exam. A full outline of the SIE content is currently available on FINRA's website.

Passing the SIE exam can provide a number of benefits to your career:

If you already passed one of the FINRA exams and are currently registered as a representative, you are considered to have passed the SIE already. If you passed one of the exams and are not currently registered, you may need to take the SIE depending on how many years elapse between now and your next registration. And, of course, if you passed the exam but your registration has lapsed, you will need to take the SIE and the new top-off for that qualification before being reregistered.

This is pretty much the same as it has always been, except you would be taking two exams instead of one. In fact, the exams are designed to take the same total time as the previous versions. For example, the SIE and Series 7 top-off exam take the same amount of time as the previous Series 7 exam.

For member firms, the cost of the top-off exams is less than the previous exams because the content was shifted to the SIE. So, if an individual has passed the SIE prior to joining a firm, it is a good indication that this person already has the basic aptitude and wherewithal to pass a top-off exam. The cost of getting that individual registered is reduced because they paid out-of-pocket for the SIE, which will likely help make a candidate more attractive to a firm.

The Securities Industry Essentials (SIE) Exam is designed to assess your knowledge of the securities industry. It ensures that people entering the industry are qualified and knowledgeable for the work they are doing. It streamlines the previous initial qualification exams into a single test, supplemented by "top-off" qualification exams.

If you want to be registered to work in a securities business, you must pass the SIE and the appropriate qualification exam for the type of securities work you'll be doing. If you already took one of the old exams and your license lapsed—assuming two years have passed since you were last registered—you have to retake the Series 7. You need to retake the SIE only if four years have elapsed since you last passed it or were last registered.

The overall content covered over the two tests—the SIE and the Series 7 top-off exam—will be nearly identical to the previous Series 7.

FINRA does not share the SIE pass rates. However, various test prep companies state that around 25-27% of candidates fail the exam on the first try. If you fail and want to retake the exam, the wait time is 30 days for the first and second attempts, then six months if you fail the third attempt.

If you were already sponsored to take one of the qualification exams, go for it. These changes won't impact you at all. If you expect to be sponsored in the future, the overall content you need to master won’t change even though you have to do it in two chunks. If, however, you are not currently sponsored or in the industry, the SIE will open the door for you to start down the path of a financial career without having to associate with a member firm first. This change gives you a choice you didn't have before.

Exam Information

An exam proctor will begin reading exam instructions approximately 15 minutes before the exam start time. Students must be in the exam room with their exam at this time. If taking the exam on a laptop, it must be booted up and have passed the security check. Hand writers must not have a laptop with them in an exam room, unless otherwise allowed according to the professor’s instructions. A student entering the exam room after the proctor begins reading instructions will not receive additional time for booting up their laptop, passing the security check, and/or reading exam instructions.

When instructed by the proctor, write your exam number on the cover page of your exam, bluebooks, and any scratch paper you turn in as part of your exam. Handwritten exam answers must be written in blue books in blue or black ink. Number the bluebooks you use (1 of 1, 1 of 2, 2 of 2, etc.). Proctors will allow time to read the professor’s instructions. Other than counting the number of pages of the exam, students are not permitted to turn the page of an exam past the instructions page until the proctor instructs them to do so.

When taking a closed-book exam, no books, outlines, book bags, purses, or scratch paper (other than the scratch paper provided) may be at your seat during the exam. These items must be left outside of the exam room or in the front or sides of the exam room. Students may not begin to write anything, including on scratch paper, before the proctor begins a closed-book exam.

Students taking in-class exams are prohibited from having any electronic communication device, other than a laptop as allowed per the professor's instructions, during the exam. Cell phones and smart watches must be turned off during the exam and placed in a bag or backpack. Violations of this rule may be considered an Honor Code violation. A clock in each exam room will be the official timekeeper for the exam.

Non-alcoholic beverages are permitted in exam rooms; however, the container must have a lid.

After the exam instructions have been read and the exam begins, the proctor will remain in the room. Any student who has a question or problem during an exam should see the proctor.

Students may use the restroom or take a break during an exam. However, all exam materials must be left in the exam room and no additional time will be given. Students must sign in and out at the front of the room with the proctor.

Best No-Exam Life Insurance Of June 2023

A no-exam life insurance policy may not be able to provide the full coverage amount you need, especially if you’re looking to cover many working years or the years of raising a family.

Before you start getting life insurance quotes, calculate how much life insurance you need. A no-exam policy alone may not be able to provide sufficient coverage.

Getting life insurance without a long application process is appealing, but don’t jump into a no-exam life insurance application without understanding your chances of getting approved. Many no-exam policies require very good or excellent health for approval. A denial goes on your insurance record and could hinder future applications.

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Intentional misrepresentations can lead to application denials or, worse, denial of a claim after you pass away. Life insurance companies have many ways to verify application information. Technology on the backend allows them to verify data from additional sources.

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Looking for traditional term life insurance? See Forbes Advisor’s ratings of the best term life insurance.