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Series 6



Definition

The Series 6 is a securities license that allows an individual to sell investment products, such as mutual funds, variable annuities, and variable life insurance. The license is granted after passing the Investment Company/Variable Contracts Limited Representative Exam, administered by the Financial Industry Regulatory Authority (FINRA). It enables the holder to act as a representative for companies that offer these specific types of investments.

Phonetic

The phonetic pronunciation for “Series 6” is: ˈsɪəriːz sɪks.

Key Takeaways

Here are three main takeaways about Series 6:

  1. The Series 6 is an exam that bestows candidates with the qualification to become entry-level securities agents. Individuals who pass the exam are allowed to sell mutual funds, variable annuities, and insurance premiums.
  2. It is administered by the Financial Industry Regulatory Authority (FINRA) and covers various topics such as securities, tax regulations, retirement plans, and interactions with clients.
  3. With a limited license, holders of the Series 6 license cannot sell stocks or bonds. To sell a greater range of securities, they would need to pass the Series 7 exam.

Importance

The Series 6 is a vital term in business/finance as it refers to a license that is issued by the Financial Industry Regulatory Authority (FINRA). This license is important because it authorizes financial professionals to become registered representatives and sell mutual funds, variable annuities, and insurance premiums. Being a Series 6 license holder signifies that the holder has met the required level of understanding, expertise, and ethical standards needed to operate in the financial industry. The licensing process involves passing the Investment Company/Variable Contracts Products Limited Representative Exam, which underpins commitment to providing accurate services to prospective investors. Therefore, the Series 6 plays a significant role in ensuring credibility and proficiency within the financial services industry.

Explanation

The Series 6 is a license that is sought after by professionals in the financial services industry, specifically those who are aiming to specialize in selling packaged investment products like mutual funds, variable annuities, and variable life insurance. The purpose of this licensing examination is to ensure the competency of entry-level Investment Company and Variable Contracts Products Representatives to perform their jobs adequately. In essence, possessing a Series 6 license signifies that the holder is qualified to act as an investment professional, offering expert advice and service related to the range of products for which the license is meant. The Series 6 license enables you to fill a variety of roles within a financial advising or investment firm, most notably as a financial advisor or investment representative. In these positions, you can use your Series 6 certification to sell packaged investment products and guide clients in their financial plans. It provides the opportunity to help clients understand these investment options and make decisions that best fit their financial goals and risk tolerance. Series 6 licensees lead clients through nuanced discussions about the intricacies of mutual funds, variable annuities, and variable life insurance policies, ultimately enabling clients to make informed investments.

Examples

“Series 6” refers to a license that enables a person to sell investment products such as mutual funds and variable annuities. Gaining this certification, offered through the Financial Industry Regulatory Authority (FINRA), demonstrates a certain level of expertise and preparedness to engage in the securities industry. Here are three real-world examples of those who might use a Series 6 license in their work: 1. Financial Advisors: These professionals often handle the financial planning for individuals or businesses. They may offer a wide variety of products to their clients to help optimize their financial health and stability. With a Series 6 license, financial advisors are able to provide more comprehensive services by offering investment products like mutual funds. 2. Insurance Agents: Some insurance agents, particularly those dealing with life insurance or annuities, may pursue a Series 6 license to be able to offer comprehensive financial products within their services. This can be seen as a value-add for their clients, as well as a way to diversify their own portfolio of offered products. 3. Brokerage Clerks: These individuals are often employed by brokerage firms and are responsible for a variety of tasks, including completing transactions for brokers and customers. Having the Series 6 license would allow them to handle a broader range of transactions, particularly those involving mutual funds and variable annuities.

Frequently Asked Questions(FAQ)

What is Series 6?
The Series 6 is a securities license qualifying an individual to engage in various kinds of financial services, such as selling mutual funds, variable annuities, and insurance premiums.
Who should obtain a Series 6 License?
Any person wishing to sell investment company/variable contracts products such as mutual funds and annuities should obtain a Series 6 license. It includes financial advisors, financial planners, and insurance agents.
How can I obtain a Series 6 License?
To obtain a Series 6 license, an individual must be sponsored by a FINRA member firm and pass the Investment Company/Variable Contracts Products Limited Representative Exam, also known as the Series 6 Exam.
What does the Series 6 Exam cover?
The Series 6 Exam covers topics such as mutual funds, variable annuities, securities, tax regulations, retirement plans, and insurance products.
How difficult is the Series 6 Examination?
The Series 6 examination is considered challenging, especially for individuals new to financial services or securities. It includes 50 multiple-choice questions and must be completed within 90 minutes.
Where can I take the Series 6 Exam?
The Series 6 exam can be taken at any Prometric testing center. You book your exam through the FINRA website.
What happens after I pass the Series 6 Exam?
After passing the Series 6 exam, you are licensed to work as an investment representative and are able to sell investment products such as mutual funds and variable annuities. However, ongoing competency in the field is required, with participants needing to adhere to regulatory continuing education requirements.
How can I prepare for the Series 6 exam?
There are many resources available to help prepare for the exam, including prep courses, practice exams, study guides and textbooks. Joining study groups or investing in tutoring may also be beneficial.
What is the cost to take the Series 6 Exam?
The exam fee for the Series 6 exam is currently $40, but additional costs may be incurred for study materials or courses.
Is the Series 6 license valid forever?
No. The Series 6 license is only valid as long as you are employed by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm. If you leave the industry, the license will expire after two years.

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