I couldn't find any real differences. Payments into both fixed and variable annuities are made from after-tax dollars, meaning that the investor can’t write the payments off on her taxes. Press J to jump to the feed. Cookies help us deliver our Services. And I think that’ll help broker-dealer firms as well maybe be a little bit more willing to hire young people knowing that they’ve already passed the SIE exam. As you can imagine, this type of annuity is typically set up for a husband and wife. Because variable annuities are considered securities and fixed annuities are not, most of the annuity questions on the Series 7 exam are about variable annuities. Now, the total length won’t be all that different because, again, you’ll have to take both the SIE exam and a shortened subsequent top-off exam for the Series 6 or the Series 7. Sorry, your blog cannot share posts by email. 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. The Series 7 exam tests you on the two basic types of annuities: fixed and variable. We welcome students, current Registered Representatives and anyone who is curious. Particularly for college students and young entrants to the profession, given that college students studying financial planning are likely going to be pushed to take the SIE exam before they graduate to get started as a financial advisor. If the wife dies first, the husband receives payments until his death and vice versa. Except the problem is that legally, having your Series 6 or Series 7 exam and working at a broker-dealer doesn’t make you a financial advisor. It is developed and offered by the Municipal Securities Rulemaking Board. However, the Series 7 Top-Off is different. New candidates will be required to pass the Securities Industry Essential (SIE) exam along with a Series 7 Top-off exam to obtain the General Securities Representative Qualification registration. It is held in one four-hour session. The basic gist as I just mentioned is that those who want to work at a broker-dealer will be able to sit for the SIE exam without first being sponsored by a broker-dealer. The Series 6 is a securities license entitling the holder to register as a company's representative and sell certain financial products. And then those who pass this SIE exam and want to go further can apply for a job at a broker-dealer, get sponsored, go take their top-off Series 6 or Series 7 exams, or actually a number of other Series exams as well. So mechanics and rules of mutual funds for the Series 6, stocks, bonds, options and other securities for the Series 7. On the other hand, the Series 7 exam is a different story. So I hope that’s helpful as some food for thought and perspective on the new SIE exam. The SIE was very general with those topics... but if you understood the SIE material with ease you’ll have a good head start. Financial Industry Regulatory Authority. Because it’s testing different knowledge, and the reality is that you don’t need to be sponsored by a broker-dealer to take the Series 65 anyway. Two on 529 like 4/5 and type of risk. Want to know how to explain what your advice is worth? Typically, retirement plans include a waiver of the 10-percent penalty in cases such as the purchase of a first home, age 55 and separated from work, death, or disability. Investopedia uses cookies to provide you with a great user experience. And so earlier this year, I think it was a really big deal when FINRA got final approval from the SEC to start offering the SIE exam starting next year. Function 3 covers information about investments, suitable recommendations, transfers of assets, and record keeping. Those who take the SIE exam will still have to do the entire Series 65 exactly as it is today, and the SIE exam will basically be irrelevant at that point. They get into detail with bonds, stocks, options, margin, regulations, etc. And the SIE exam resolves that blocking point, because now, students will be able to get registered for and go sit for the SIE exam before they even graduate if they want so they can hit the ground running immediately after graduation, get hired by a broker-dealer, quickly take the much shorter top-off exam, and then get going on their career. The Series 7 Exam Subreddit is a professional community of Reddit users focused on the passing of the FINRA Series 7 Exam. Major job functions covered on the Series 7 … Joint life with last survivor annuity: This option guarantees payments over the lives of two individuals. If so, so did you have any surprises when you sat for the exam? All variable annuities have to be sold with a prospectus, and only individuals who hold appropriate securities and insurance licenses can sell them. Sie is basic questions and the top off gets into much greater detail. Function 4 has 5 questions that center around obtaining, verifying, and confirming customer purchase and sale instructions. Like the Series 6, it includes four functions:, The Series 7 license allows financial advisors to engage in buying and selling virtually all securities-related investment products. Kaplan has study materials available for the SIE exam as well as the Series 7 exam . Acknowledging the problems this creates, earlier this year FINRA received approval from the SEC to begin offering the SIE (Securities Industry Essentials) exam starting next year, which will finally allow prospective financial advisors to get started on their Series exams without being sponsored! And that’s ultimately why I’m actually concerned about the introduction of the SIE exam. Upon passing the exams and registering with FINRA through the sponsoring firm, the candidate is … You can also submit your question in advance through our Contact page!). Weird. At Kitces.com, advisors come first. Because this type of annuity covers the lifespans of two individuals, it has the lowest payouts. Under FINRA Regulatory Notice 17-30, the SIE (Securities Industry Essentials) Exam will actually first become available next October of 2018, allowing prospective brokers to be able to sit for the SIE exam without first being sponsored by a broker-dealer. Topoff is mostly suitability, https://youtu.be/fAB0sYNBZLcjust a little help for the exam.. since the Moderator blocked me from giving free advice I can only do it in replies. Many financial advisors getting started in their careers have historically faced the same conundrum: In order to get started with a broker-dealer, you needed to pass your Series 6 or Series 7 exam. Register now to join us LIVE on Tuesday, December 1, at 3:00 pm EST for our CE-eligible webinar, End-Of-Year And 2021 Tax Planning For A Biden Administration. Instead, the individual will be able to register themselves directly with FINRA, and then register to take the SIE exam at a local testing center from organizations like Prometric and Pearson. The money that investors deposit is held in a separate account because the money is invested differently. Series 6 questions are broken down into four sections related to job functions., After successful completion of the exam, Series 6 licensed representative can recommend open-end mutual funds, variable annuities, variable life insurance, unit investment trusts, and municipal fund securities—products commonly sold by financial planners. Did anyone else feel as I feel regarding grasping the concepts / retaining the mats this time around? You have to take your time and read the question a few times and all the answers. The earnings grow on a tax-deferred basis, and the investor is not taxed on the earnings until withdrawal at retirement. For this week’s Office Hours, I want to talk about a recent change that came through at FINRA, finalized earlier this year, which is the introduction of something called the Securities Industry Essentials exam, or the SIE exam, for short. Fixed annuities have fixed rates of return that the issuer guarantees.