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Following are frequently asked questions FAQ about FINRA registration and qualification requirements. Click on the links below to view all sections of the FAQ. To submit questions that do not appear in this document, please send us an email.
In general, an ordinary CD issued by a regulated financial institution and insured by the Federal Deposit Insurance Corporation is not considered to be a security. Most states require the Uniform Securities Agent State Law Examination Series 63 of individuals who will transact a securities business.
This qualification requirement adds onto FINRA's.
I'm not sure where I want to take my exam. Can I schedule an appointment at a Prometric and a Pearson center for the same exam? What if I'm already scheduled at a Prometric Testing Center but want to reschedule my appointment to a Pearson Testing Center?
You must first cancel your appointment with the first vendor in this case Prometric Testing Center before scheduling a new appointment with the other vendor Pearson VUE Testing Center.
Please review the Cancellation Policy page to determine whether you are within the timeframe allotted for rescheduling or if additional fees will apply.
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You can cancel a Prometric appointment by going to www. You can cancel a Pearson appointment by going to www. I had a technical problem at a center and they cannot reschedule me for two weeks. However, I just found out there is another center close by that has availability. Can I just call the other center to schedule? You can attempt to make an appointment at the other center. If you are unable to do so, you should contact your registration department.
They will in turn contact FINRA to resolve the problem. What happens if I go to the wrong center? Can I still take my test or do I have to reschedule. You will need to work with the center staff to determine if it is possible to take the test at that location.
Be aware that you may be charged a no-show or late cancellation fee by the center that originally reserved your appointment. I called the test center to inquire about my appointment, but they were unable to find it based on my appointment confirmation number. What should I do? If the center is still unable to find your appointment, contact your registration department. They can work with FINRA to resolve the problem.
My registration department scheduled me at a center I did not want to go to. Can I reschedule the appointment to another center? If you are planning to schedule an appointment at a site operated by the same vendor as your scheduled appointment but at a different location or date, you can contact the vendor to reschedule.
However, if you are planning to schedule your appointment with a different vendor, you will need to cancel the first appointment, and then contact the other vendor to schedule a new appointment. Why can't I just transfer my appointment from Pearson Professional Center to a Prometric Testing Center? Don't they use the same information? Although much of the same information is required for scheduling an appointment, each vendor has its own scheduling system to schedule appointments in their delivery network.
Yes, you can schedule on the Internet for Prometric Testing Centers at www. Yes, the cancellation policy is the same. Where can I go for help if I am having problems scheduling or have a complaint about a test center? You can visit FINRA's test center location list for a complete listing of centers along with addresses, phone numbers and directions to each location.
I feel comfortable scheduling my appointment, but what about the center procedures once I get there. Will both vendors follow the same sign in procedures?
Is there a pre-requisite requirement for the Municipal Fund Securities Principal Series 51 Examination? Who is eligible for registration as a foreign associate?
What functions may a foreign associate perform at a firm? A foreign associate is an individual who is not a citizen, national, or resident of the United States or any of its territories or possessions.
A foreign associate does not engage in securities activities with or for any resident, citizen, or national of the United States. This person may engage in securities activities for the firm outside the jurisdiction of the United States only. The FINRA-registered firm must submit a Form U-4 through Web CRD to request registration as a foreign associate on your behalf. There is no examination requirement associated with this type of registration.
This can include acting as a trader or being the registered person responsible for servicing accounts of a foreign national. Foreign finders are not considered as associated persons of a firm. The sole involvement of a foreign finder in the business of a firm is the initial referral of non-U. Anyone actively involved in the member's investment banking or securities business must be registered as a representative with FINRA. Their duties may include supervision, solicitation, or training of persons associated with the member.
Persons associated with a member, enumerated below, who are actively engaged in the management of the member's investment banking or securities business, including supervision, solicitation, conduct of business, or the training of persons associated with a member for any of these functions are designated as principals.
Such persons shall include:. What are the registration and qualification requirements for a member firm's chief compliance officer?
The chief compliance officer must be designated on Schedule A of a member's Form BD and must be registered as a General Securities Principal Series If the member's activities are limited to particular areas of the investment banking or securities business, the chief compliance officer may apply for a limited principal registration, such as the Limited Principal Investment Company and Variable Contracts Products Series 26 , Limited Principal Direct Participation Programs Series 39 , and Government Securities Principal.
For more information refer to Notice to Members Does FINRA accept the NYSE Compliance Official Examination in lieu of the FINRA qualification examinations? However, note that the chief compliance officers who passed the Series 14 Examination will be required to satisfy the pre-requisite requirement before the general securities principal approval is granted.
Can I solicit customer accounts once my firm submits the Form U-4 and fees for me to FINRA, but before my registration becomes effective? You may not perform registered representative functions until your registration becomes effective with all regulatory organizations and state securities commissions.
You may work in other areas at the securities firm if the tasks do not require registration. Can I continue to service my customers' accounts before my re-registration becomes effective with my new employer member? You may not transact any securities business until your registration with your new employer member becomes effective. If a friend who is not registered with FINRA refers clients to me, may I pay him a commission for these referrals?
You cannot share commissions generated from securities transactions with non-registered individuals. Can I maintain an active registration with two FINRA member firms concurrently? FINRA does not prohibit an individual from maintaining concurrent registrations, but both member firms must agree to this arrangement.
You must be sure that this dual affiliation does not violate the registration requirements of other regulatory organizations or state securities commissions. How long will my qualification examinations be valid after I end my affiliation with a FINRA member firm? You may reactivate your representative or principal exam up to two years after your registration has been terminated.
Note, the two years are calculated from the employment end date with the prior employer or from the CE inactive date. How do I reinstate my registration with FINRA-I've been out of the industry for more than two years?
I passed the Series 7 test. Will I lose my general securities status if this new firm registers me as a DPP representative? This applies to re-registration in any limited representative category. I was a general securities principal. Now I am with a new firm and will only register as a general securities representative. Will I lose my principal status? If you do not reregister as a principal within two years of your last principal registration, the principal qualification will lapse.
You must then retest to function in that capacity in the future. I am joining a FINRA member firm as a consultant to hold public seminars promoting its products and services. Should I register since this firm does not technically employ me? The activity you describe requires registration as a representative or principal.
Your employment status does not affect your involvement in the member's investment banking or securities business. I am an independent contractor not an employee of a large insurance company.
I refer potential customers to this firm.
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Should I become registered? Under NASD rules, job performance determines the registration requirement. You must therefore be registered if you solicit client accounts for a member firm regardless of the terms of your contract with this firm. Can a firm hire unregistered individuals whose sole function will be to cold call potential customers?
Member firms may employ unregistered individuals for the purposes of: Extending invitations to firm-sponsored events at which presentations and account or order solicitation will be conducted by appropriately registered personnel; Inquiring whether the prospective customer wishes to discuss investments with a registered person; Determining whether the prospective customer wishes to receive investment literature from the firm.
The firms employing unregistered persons to perform these functions must be sure these employees do not discuss general or specific investment products or services offered by the firm, prequalify prospective customers as to financial status, investment history, and objectives, or solicit new accounts or orders. While registered with member firm "A," can I sell limited partnership interests for non-member firm "B" in a private placement?
To participate in a private securities transaction, you must provide your employer member written notice describing the proposed transaction and your role in this activity. You must also notify your employer member whether you have received or will receive selling compensation in connection with the transaction.
The member must provide you a written statement advising whether it approves or disapproves your participation in the proposed transaction. If the member allows such activity, the member must record the transaction s on its books and records. The member must also supervise your participation in the transaction. I will not have any retail customers. Do I have to register with FINRA?
Under NASD rules anyone associated with a member who engages in the investment banking or securities business for the member must register.
The rules do not distinguish between retail and institutional securities customers. Do I need to register if I will only be selling exempt securities? The terms "Exempt Securities" and "Exempt Transactions" mean these particular securities or transactions private placements or intrastate offerings are exempt from the filing requirements of the Securities Act of FINRA Home About FINRA Newsroom Compliance Tools Contact Firm Gateway Sign In.
You are here Home For Industry Professionals Registration and Qualification Registration and Qualification FAQ Following are frequently asked questions FAQ about FINRA registration and qualification requirements. On This Page Examinations Foreign Associates Registration Examinations 1.
What examination is required to trade certificates of deposit? If I pass a FINRA examination, do I still have to take the Series 63?
You can only have one appointment per exam. Can I still take my test or do I have to reschedule You will need to work with the center staff to determine if it is possible to take the test at that location.
Can I schedule on the Internet for both vendors? Is the cancellation policy the same for both vendors? You should contact your firm's Registration Department.
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Where can I go to view the entire list of testing centers for both vendors? For the most part, the centers will follow identical procedures with two notable exceptions: Pearson VUE Testing Centers record candidate palm vein patterns a digital palm scan and, Prometric will scan each testing candidate with a metal detector wand prior to each entry into the testing room.
How do I become registered as a foreign associate? In what capacity may a foreign associate act on behalf of a firm? In what capacity may a foreign finder act on behalf of a firm? Who must register as a representative? Who must register as a principal? Such persons shall include: Sole Proprietors Officers Partners Managers of Offices of Supervisory Jurisdiction, and Directors of Corporations. A member firm must sponsor you and you must re-qualify by examination.
Forms and Instructions Form BD. See All Registration Forms. Related Links Membership Rules Reference. Overview of Fast Track Review Process. Exam Candidates Requiring Special Accommodations. Candidates with Limited English Proficiency LEP.
Related Links Registered Representatives Brochure PDF KB. Permitted Activities of Registered Principals. Permitted Activities of Registered Representatives. Implementation and Amendment Dates of Qualification Examinations. FINRA Tutorial for Taking Qualifications Exams. Prerequisites for Qualification Exams. Office of the Ombudsman. File a Regulatory Tip. Overview Initiate an Arbitration or Mediation Information for Arbitrators Information for Mediators.
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