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.

Three Important Questions To Ask A Real Estate Agent Before You Commit

Every day, people begin their journey of finding a real estate agent for their home sale or search. Most begin on real estate websites or social media platforms reading what reviews they can find or asking friends to point them toward an agent they trust. But how do you figure out which agent is the right one for you?

There are so many things you might ask and so many ways to vet the potential agents, but there are three important questions you want be sure to ask any agent you interview — whether you are looking to buy or sell — that can help you be better educated when making that big decision.

1. How many homes have you sold in the last 12 months?

This is important to ask because experience and education are not best looked at through the lens of how many years a real estate agent has been in the business. Asking this question will help you best determine an agent's ability to handle your transaction and how well the agent will know the current market. The more homes the agent has sold in this time frame, the more you can expect this agent is probably on their A-game.

2. Do you work with buyers or sellers?

This can be a tricky question to ask, but you want to know the answer to this to help you understand the breakdown of question one. The reason is, depending on your local area's market, you will need insights into current trends that buyers or sellers are adjusting to and operating under to help you best see how your agent will help you in reaching your goal.

Often you will find that agents start off working more with buyers than with sellers because the process of working with buyers requires less knowledge of marketing properties and other specifics of pricing solutions that sellers require. So if the agent works with a roughly equal number of buyers and sellers, you can feel comfortable that they can help you in either case with their well-rounded experience. In the end, you will want to have an agent with the most knowledge on both sides of a transaction.

3. Do you use social media to help your clients? How or why not?

You will want to also take your own look at your agent's social media accounts before making a decision about whether to work with them. Not only will you find out information about the agent, but you will see examples of their marketing, reviews from past clients and much more. Social media is not going away. In fact, it will be one of the most helpful tools as you determine which agent you want to work with and as you sell or search for your new home.

If you look at an agent's primary business social media account and find they don't advertise a client's property but seem to post plenty of selfies at pool parties, you might want to continue looking. Try to find an agent who has spent time shooting videos of local property tours and places advertisements for client properties they are trying to sell. While selfies may be the fad of the moment, it will not help you in selling your home.

No agent or agency is exactly the same — some practices, like the laws and procedures from state to state, will differ. Ask as many questions as you need to correctly determine who will be best suited to help guide you on this journey, and keep your goals and interests consistent with their practices. The right real estate agent will bring you to the end of the journey having lost the least and gaining the most possible. Use every tool at your disposal and enjoy the process — it can even be fun if you pick the right agent to help you along the way.