Looking to kickstart a career in financial services? If you’re passionate about helping clients achieve their financial goals with products like mutual funds, variable annuities, and unit investment trusts, the Series 6 license is your gateway to success.
Think of the Series 6 as your ticket into the world of investment sales. It’s a must-have credential for anyone looking to sell essential investment products and impact their clients’ financial futures.
In this guide, I’ll uncover everything you need to know about the Series 6 license—what it qualifies you to do, the exams you’ll need to pass, and how it fits into the FINRA regulatory framework.
Key Takeaways
- What Is a Series 6 License?: The Series 6 license allows professionals to sell specific securities products, such as mutual funds, variable life insurance, and unit investment trusts (UITs).
- FINRA Requirements: The license is regulated by the Financial Industry Regulatory Authority (FINRA), a self-governing body for the securities industry.
- SIE Exam: To obtain a Series 6 license, candidates must pass the Securities Industry Essentials (SIE) exam and the Series 6 exam.
- Job Scope: Series 6 representatives perform major job functions like evaluating customers’ financial profiles, processing purchase and sales instructions, and maintaining appropriate records.
- Career Opportunities: With a Series 6 license, professionals can work for broker-dealers, insurance companies, and other financial institutions.
What Is a Series 6 License?
The Series 6 license, formally known as the Investment Company and Variable Contracts Products Representative license, allows financial professionals to sell certain types of investment products. These include:
- Mutual Funds
- Variable Annuities
- Variable Life Insurance
- Unit Investment Trusts (UITs)
- Municipal Fund Securities
This license is critical for professionals who seek business opportunities in the financial services industry by selling these securities. While it does not permit the sale of stocks, bonds, or exchange-traded funds (ETFs), it is ideal for individuals focusing on investment company products and variable contracts.
Who Oversees the Series 6 License?
The Series 6 license is regulated by the Financial Industry Regulatory Authority. FINRA is a self-regulatory organization responsible for ensuring the integrity of the securities industry and sets the rules, administers the licensing exams, and ensures compliance with industry regulations. All individuals who sell securities products must pass FINRA exams to obtain the appropriate license.
4 Steps to Obtain a Series 6 License
Here is a step-by-step guide to earning your Series 6 license:
1. Pass the SIE Exam
The Securities Industry Essentials (SIE) Exam is the first requirement for obtaining a Series 6 license. The SIE exam evaluates your basic knowledge of the securities industry, including topics such as:
- Securities products
- Regulatory frameworks
- Investment companies and variable contracts
- Ethics and best practices
The SIE exam is required for the Series 6 exam, but it does not require sponsorship from a FINRA member firm or other financial institution.
2. Secure Sponsorship
Sponsorship from a FINRA-member firm, broker-dealer, or another qualifying financial institution is required to take the Series 6 exam. Your sponsoring firm will guide you through the registration process and ensure you meet all FINRA requirements.
3. Pass the Series 6 Exam
The Series 6 exam tests your ability to perform the functions of a registered representative specializing in investment companies and variable contract products. This exam consists of 50 multiple-choice questions on topics such as:
- Obtaining and evaluating customers’ financial profiles and investment objectives
- Processing purchase and sales instructions
- Opening accounts, transferring assets, and maintaining appropriate records
- Providing suitable recommendations to potential customers
- Confirming transactions and following sales instructions
The Series 6 exam requires a minimum passing score of 70%, and it is suggested to use Series 6 prep courses to help you pass.
4. Complete Continuing Education
Once you pass the Series 6 exam, you must meet FINRA’s ongoing continuing education requirements to maintain your license. This includes:
- Regulatory Element: Periodic training that keeps you updated on regulatory changes and industry rules.
- Firm Element: Training provided by your sponsoring firm tailored to your job function.
What Can You Do With a Series 6 License?
A Series 6 license opens doors to several roles within the financial services industry, including:
Sell Investment Products
Professionals with a Series 6 license are authorized to sell:
- Mutual funds
- Variable annuities
- Variable life insurance
- Unit investment trusts (UITs)
- Municipal fund securities (e.g., local government investment pools)
Evaluate Financial Profiles
Registered representatives perform critical functions such as:
- Obtaining and evaluating customers’ financial profiles and investment objectives
- Providing investment advice on suitable products
- Confirming and processing purchase and sales instructions
Work in Financial Institutions
With a Series 6 license, you can work for:
- Broker-dealers
- Insurance companies
- Mutual fund companies
- Other financial institutions
Assist with Retirement Planning
Series 6 representatives often help clients plan for retirement by recommending mutual funds, variable annuities, and life insurance policies tailored to their long-term goals.
Series 6 License vs. Other Securities Licenses
While the Series 6 license is highly specialized, it differs from other securities licenses, such as:
- Series 7 License: Allows professionals to sell a broader range of securities, including stocks, bonds, ETFs, and options.
- Series 63 License: Focuses on state-specific securities laws and regulations.
For individuals focused on mutual funds, variable contracts products, and life insurance, the Series 6 license is the most appropriate certification.
Career Benefits of a Series 6 License
Earning a Series 6 license offers several advantages for financial professionals:
- Specialized Expertise: The license allows you to focus on investment company and variable contracts products, making you a specialist in these areas.
- Career Growth: It provides a foundation for advancing in the financial services industry.
- In-Demand Skills: The ability to sell mutual funds, variable annuities, and life insurance is valuable to broker-dealers, insurance companies, and clients alike.
- Flexible Career Options: You can work for a variety of financial institutions or as part of a financial planning team.
Final Thoughts
The Series 6 license is an essential certification for professionals seeking to sell investment company products and variable contracts in the financial services industry.
With a Series 6 license, you can evaluate customers’ financial profiles, process purchase and sales instructions, and provide suitable recommendations for products like mutual funds, variable annuities, and life insurance. This credential opens doors to rewarding roles in broker-dealers, insurance companies, and other financial institutions, making it a valuable step toward a successful financial career.
If you’re ready to start your journey, study for Series 6, secure sponsorship, and position yourself as a trusted professional in the securities industry!
FAQ
It allows you to sell mutual funds, variable annuities, and variable life insurance contracts.
Series 6 is for packaged securities like mutual funds; Series 7 covers a wider range, including stocks, bonds, and options.
The exam has 50 questions, requires 70% to pass, and is manageable with focused study.
No. Series 6 allows selling investment products, while Series 63 covers state securities laws.
Series 6 is limited to mutual funds and annuities; Series 7 includes stocks, bonds, and other individual securities.
