Series 6 – Investment Company and Variable Contracts

It is required that all NEW representatives take and pass the Securities Industry Essentials® (SIE®) Exam as a pre-requisite to taking the Series 6 Exam. The FINRA Series 6 is a corequisite exam that needs to be successfully completed in addition to the Series 63, 65, or 66 exam before a candidate can apply to register with a state. The Series 6 covers far less information than a tradional Series 7 License, however is useful to those who are planning to deal with a limited number of investment products, as furthered hereunder.

1. Securities Industry Essentials® (SIE®) Exam
   
2. Series 6 – Investment Company and Variable Contracts Products Representative
   

Exam	Questions	Allotted Exam Time	Required To Pass
SIE	75 Multiple-Choice Questions	1 hour and 45 minutes	70%
S6	50 Multiple-Choice Questions	1 hour and 30 minutes	70%
S7	125 Multiple-Choice Questions	3 hours and 45 minutes	72%

Compared to the SIE exam questions, Series 6 questions are much more situational than definitional, and require a deeper knowledge of investment company and variable products. After passing the SIE and Series 6 Exams, representatives must also pass at least ONE of the following Securities Law Exams in order to be registered to conduct business in any State, and must be approved in their home state.

1. Series 63 – Uniform Securities Agent State Law Exam
2. Series 65 – Uniform Investment Adviser Law Exam
3. Series 66 – Uniform Combined State Law Exam
   ** The Series 66 exam is the equivalent of taking both the Series 63 and Series 65 exams.

Exam	Questions	Allotted Exam Time	Required To Pass
S63	60 Multiple-Choice Questions	1 hour and 15 minutes	72%
S66	100 Multiple-Choice Questions	1 hour and 50 minutes	73%
S65	130 Multiple-Choice Questions	3 hours	70%

Permitted Activities

Candidates who passes the Series 6 exam (35/50 Correct Answers) are qualified for the solicitation, purchase and/or sale of the following securities products:

1. mutual funds (closed-end funds on the initial offering only),
   
2. variable annuities,
   
3. variable life insurance,
   
4. unit investment trusts (UITs), and
   
5. municipal fund securities [e.g., 529 savings plans, local government investment pools (LGIPs)].

The Exam is structured and distributed into the following four major groups, which are further dissected throughout the course and its modules.

Section	Description	Questions	Weight
1	Customers and Potential Customers	12	24%
2	Financial Profile and Investment Objectives	8	16%
3	Disclosure, Suitability, Assets, and Records	25	50%
4	Transactions, Confirmations, Purchases, and Sales	5	10%
Total		50	100%

The Series 6 Exam covers a limited range of investment products with respect to the Series 7 and mainly focuses on sales practices, industry regulations, and suitability. Understanding the different types of investment companies, retirement plans, and regulatory guidelines is also crucial as referenced below this course is covered in a span of several modules which is also available at fast/ slow paces - depending on your schedule.

I. Introduction to Series 6 Exam

  A.     Purpose and Structure of Series 6.
  B.     Overview of Financial Products Covered.
  C.     Regulatory Framework and Responsibilities.

II. Securities Markets and Regulatory Agencies

  A.     Overview of Securities Markets.
  B.     Roles of Regulatory Agencies (SEC, FINRA).
  C.     Securities Exchange Act of 1934 and Investment Company Act of 1940.

III. Investment Companies and their Products

  A.     Types of Investment Companies.

1. Mutual Funds.
   
2. Unit Investment Trusts (UITs).
   
3. Closed-End Funds.
   

  B.     Characteristics and Features of Investment Products.
  C.     Investment Objectives and Risks.

IV. Securities and Tax Regulations

  A.     Securities Act of 1933 and 1934.
  B.     Regulatory Requirements for Securities Offerings.
  C.     Tax Considerations for Investors.

V. Mutual Fund Structures and Operations

  A.     Mutual Fund Classes and Share Types.
  B.     Sales Charges and Fees.
  C.     Redemption and Distribution of Mutual Fund Shares.

VI. Variable Annuities and Insurance Products

  A.     Features and Benefits of Variable Annuities.
  B.     Types of Insurance Products.
  C.     Suitability and Ethical Considerations.

VII. Retirement Plans and Regulations

  A.     Types of Retirement Plans (IRA, 401(k), etc.).
  B.     ERISA and Regulation of Pension Plans.
  C.     Tax Considerations in Retirement Planning.

VIII. Customer Account and Investment Strategies

  A.     Account Types (Individual, Joint, etc.).
  B.     Investment Strategies based on Client Objectives.
  C.     Suitability and Client Recommendations.

IX. Sales Practices and Regulations

  A.     Regulation of Sales Activities.
  B.     Ethical Considerations in Sales Practices.
  C.     Customer Communication and Disclosures.

X. Examination Preparation Strategies

  A.     Study Materials and Practice Exams.
  B.     Test-Taking Strategies and Time Management.