Registration, Testing and Qualifications


Any securities professional associated with a member firm—including partners, officers, directors, branch managers, department supervisors, and salespersons—must register with FINRA. The registration application requires information about the individual's prior employment and disciplinary history. FINRA prescribes two levels of qualification and registration:

  • Registered representatives, generally sales personnel.
  • Principals, generally officers of the firm and other management personnel involved in the day-to-day operation of the firm's investment banking or securities business.

As part of the registration process, securities professionals must pass examinations administered by FINRA to demonstrate competence in the areas in which they will work. These mandatory qualification examinations cover a broad range of subjects on the markets, as well as the securities industry and its regulatory structure, ensuring a minimum level of understanding and expertise. The areas in which candidates are tested include federal securities laws; Securities and Exchange Commission (SEC) and FINRA rules and regulations; securities products; the operation and interrelation of financial markets; economic theory and kinds of risk; corporate financing, accounting, and balance sheet analyses; portfolio theory and analysis; fair sales practices, including solicitation and presentation; types of customer accounts; and tax treatment of various investments.

 

Prospective principals of securities firms must pass additional examinations that test their knowledge of supervisory rules in the areas of investment banking, trading and market making, retail sales activities, and financial responsibility rules. Financial and operational principals must further demonstrate a thorough knowledge of the requirements regarding recordkeeping, net capital, customer reserves, financial reporting, and credit.

 

In addition to its own examinations, FINRA administers for the securities industry and the states approximately 30 different examinations to individuals seeking to become registered representatives or principals of securities firms.

 

PROCTOR System

 

PROCTOR® is a computer system specifically designed for the administration and delivery of computer-based testing and training. The PROCTOR system is currently delivering over 440,000 exams and over 175,000 training sessions per year. PROCTOR exams and training are provided at FINRA-authorized delivery locations nationwide. For a listing of centers testing and their hours of operation, view the exam locations or contact the Gateway Call Center at (301) 590-6500.

 

You should be aware of two major features of PROCTOR-administered sessions:

 

  1. The system delivers exams and training sessions daily. Once enrolled on the PROCTOR system, you can make an appointment at a FINRA-authorized delivery location or center at your convenience.

  2. You receive your score as soon as you complete the exam. FINRA posts your score on the Web CRD system within two business days following your exam/continuing education session.

 

By using the PROCTOR system, FINRA has reduced significantly the turnaround time associated with the qualification and registration of representatives and principals in the securities industry.

 

Exam/Training Sessions Available


FINRA administers the following sessions on the PROCTOR system:

 

Client-Series ID/Title

1-3 National Commodity Futures Exam
1-4 Registered Options Principal Exam
1-5 Interest Rate Options Exam
1-6 Investment Company Products/Variable Contracts Representative Exam
1-7 General Securities Representative Exam
1-9 General Securities Sales Supervisor-Options Module
1-10 General Securities Sales Supervisor-General Module
1-11 Assistant Representative-Order Processing Qualification Exam
1-14 NYSE Compliance Officer Examination
1-17 Limited Registered Representative Exam
1-22 Direct Participation Programs Representative Exam

1-23 General Securities Principal Sales Supervisor Module

1-24 General Securities Principal Exam
1-26 Investment Company Products/Variable Contracts Principal Exam
1-27 Financial and Operations Principal Exam
1-28 Introducing Broker/Dealer Financial and Operations Principal Exam
1-30 Branch Managers Exam—Futures
1-31 Futures Managed Funds Exam
1-32 Limited Futures Exam—Regulation
1-34 Retail Off-Exchange Forex Examination
1-37 Canada Module of the General Securities Registered Representative Exam (with options questions)
1-38 Canada Module of the General Securities Registered Representative Exam
1-39 Direct Participation Programs Principal Exam
1-42 Registered Options Limited Representative Exam

1-44 Pacific Exchange Market Maker Exam
1-45 Pacific Exchange Floor Broker/Market Maker Exam
1-46 Pacific Exchange Floor Broker Exam
1-51 Municipal Fund Securities Principal Exam
1-52 Municipal Securities Representative Exam
1-53 Municipal Securities Principal Exam
1-55 Limited Representative-Equity Trader Exam
1-62 Corporate Securities Limited Representative Exam
1-63 Uniform Securities Agent State Law Exam
1-65 Uniform Investment Adviser Law Exam
1-66 Uniform Combined State Law Exam
1-72 Government Securities Representative Exam
1-82 Limited Representative-Private Securities Offerings Exam

1-86 Research Analyst Part 1 Analysis Module

1-87 Research Analyst Part II Regulations Module
1-91 FDIC Examiner Technical Evaluation

1-92 FDIC New Technical Evaluation Examination
1-161 Supervisory Analyst Part 1
1-162 Supervisory Analyst Part 2

 

Continuing Education Regulatory Element Programs

2-101 General Program
2-106 Series 6 Program for Investment Company Products/Variable Contracts Representatives
2-201 Supervisor Program

 

Appointments/Enrollment


Before you can schedule an appointment to take an exam, your firm must file the proper application form through the Web CRD system. A scheduling window will be posted on the Web CRD system upon approval. For persons associated with non-FINRA member firms, FINRA Field Support Services mails a PROCTOR enrollment confirmation to your firm.

 

For the Continuing Education Program, you automatically become registered upon your anniversary date. The Web CRD system notifies your firm of the enrollment period via an electronic notification to your "CE Required" Firm Queue.

 

After your firm receives your enrollment notification, you can call a conveniently located delivery location to schedule an appointment for the session. Due to the many sessions administered, you should schedule your session as far in advance as possible. This way you can secure an appointment on the desired date. In addition to the desired appointment date, the location staff will need to know:

  • your name and Social Security number;
  • name of your firm;
  • telephone number where you or your employer can be reached; and
  • client ID, the name of the session, or its identifying series ID. Note: The client ID for all exams is "1" and the client ID for Continuing Education is "2".

The location staff will not schedule an appointment for a date past the expiration date stated on your enrollment confirmation. If your enrollment expires, FINRA will re-enroll you upon receipt of another exam request form.

 

An enrollment is valid for the period stated on the enrollment notification when it is issued. You must accept any appointment time available within the remaining enrollment period. However, if you call a location at least 10 business days before your enrollment expires, and there are no appointment times available, FINRA may extend your enrollment to the next available appointment at the location.

 

In these examples, extensions would not be granted:

  • You call before your enrollment expires, and there are appointment times available before the expiration date, and you are unable or unwilling to accept the available opening(s).
  • You call before the enrollment expires, and there are no appointments available before the expiration date and you are unable or unwilling to take the first available appointment after the expiration date.
  • You call after the expiration date.

In no case will more than one extension be granted for an enrollment.

 

An appointment can be made for you before you receive your enrollment notification; however, the appointment will not be honored unless your enrollment is valid on the PROCTOR system at least seven business days before your appointment.

 

You may make an appointment for two or more different exams on the same day (for example, a FINRA exam and the state law exam), but you must make an appointment for both exams before the exam date. Such arrangements will also depend on the availability of computer scheduling at the delivery location.

 

You may cancel an appointment on a timely basis without penalty before the scheduled session. An appointment cancellation will be considered timely if effected according to the following schedule:

 

If Appointment is Scheduled for: Cancellation Must be Effected no Later Than Noon on:
Monday Thursday of the preceding week
Tuesday Friday of the preceding week
Wednesday Monday of the same week
Thursday Tuesday of the same week
Friday, Saturday, Sunday Wednesday of the same week


 

If a holiday occurs during the normal cancellation period, this schedule adjusts to define "timely cancellation" as one day earlier than stated above.

 

If your cancellation is not timely, FINRA will charge a cancellation fee equal to the exam fee to your firm. FINRA also will charge a cancellation fee to your firm if you do not appear for an appointment. Similarly, if you arrive so late that your session cannot begin without disturbing the delivery location schedule for that date, FINRA will charge your firm a cancellation fee.

 

All of the above events that cause FINRA members to be penalized also trigger penalties for non-FINRA members. For candidates associated with non-FINRA members, the penalty is the invalidation of the candidate enrollment itself. Such candidates must then reapply for the exam and submit a new exam fee before the generation of another enrollment on the PROCTOR system.

 

Taking the Exam/Training


You should arrive at the authorized PROCTOR delivery center about 30 minutes before your scheduled appointment time. To gain admission to the center, you must provide one valid form of identification with your signature and your picture as issued by a government agency, such as a valid driver's license, passport, or military ID. If you do not have ID that is adequate, you must cancel your appointment until you obtain proper ID. You are also required to sign the center's "sign-in log," agree to the rules of conduct through your signature, and provide a single finger imprint.

 

FINRA sessions are closed-book. When you enter the center, you are not allowed to bring personal possessions, such as books, briefcases, and notes into the testing/training room. You may take only authorized material issued by center staff to the testing/training room. Neither the center staff nor FINRA is responsible for articles you are not allowed to bring to your session. The center staff will provide as much scratch paper as needed during the session. All materials, including used and unused scratch paper, must be returned to the center staff at the end of the session.

 

Calculators will be provided by the center staff to you upon request. Do not bring calculators with you for your exam—you will not be allowed to use them.

 

Severe penalties are imposed on you if you cheat on a FINRA-administered exam. These include suspension or bar from registration and a fine-usually in the thousands of dollars. After the suspension period, you will be required to re-qualify to activate your registration status.

 

The process for taking an exam or training on the PROCTOR system is easy-no previous computer experience is necessary. Before starting your session, an introductory lesson will familiarize you with the PROCTOR system and help you understand how the system operates.

 

Features of the PROCTOR system used for exam delivery include:

  • Scroll bars that allow you to move the questions up or down at your convenience.
  • A clock display that can be turned on to help you track the amount of time remaining during the session.
  • A confirmation box that appears each time you answer a question so you can confirm your answer before proceeding to the next question.
  • The ability to answer questions by either using the keyboard to type the letter corresponding to your answer or the mouse to point and click on your answer.
  • The ability to mark questions you wish to review later so you can easily go back to them during your session.

FINRA identifies the appropriate sections and the number of questions in each section in the exam specifications. The PROCTOR system then randomly selects the questions for your exam on a section-by-section basis from the appropriate question bank. The system automatically tracks the difficulty level of each question and enforces selection criteria that will assure that each candidate receives an exam of comparable difficulty. Once the system measures and accepts an exam for presentation to you, it sequences the questions. The PROCTOR system places the difficult questions in the middle and the easier ones at the beginning and at the end of the exam.

 

You may review any question at any time before the allowed testing time for your exam expires. The introductory lesson demonstrates how to answer questions and flags them if you want to review them later. View an illustration of how an exam question appears on the PROCTOR system.

 

At the end of the allowed testing time or when you voluntarily stop your exam, the system determines your score and displays a grade result on the computer. The grade report will show whether you passed the exam. Within two business days, FINRA posts the results to the Web CRD system. 

 

When completing a continuing education session you will be shown how to progress through the scenarios that are presented. Features include:

  • A tool bar that provides you access to a help sequence and clock display.
  • Feedback to your responses to the scenarios presented indicating their appropriateness for the situations.

For continuing education, at the end of your session, you will be given a report indicating whether you completed the session. Within two business days, FINRA posts the results to the Web CRD system.

 

Equipment problems do occasionally occur; normally center staff can quickly correct any difficulty you experience while taking a session. If you notice any malfunction with your computer, tell the center administrator immediately.

 

If the system malfunction lasts more than 30 minutes, you may choose to end your session. FINRA will re-enroll you and you will have to schedule a new appointment with the center staff. The staff will schedule as timely an appointment as possible.

 

FINRA Special Arrangements Procedures


Americans with Disabilities Act (ADA) Candidates

Special arrangements can be made to administer FINRA sessions to candidates with physical or learning disabilities. The FINRA Special Accommodations Eligibility Questionnaire and Special Accommodations Verification Request Form must be submitted to FINRA Field Support Services. The sponsoring firm should contact FINRA Field Support Services at (800) 999-6647 with any questions or for more information regarding this procedure.

 

Note: Candidates with transitory or temporary conditions that are not "impairments or disabilities" (e.g., pregnancy, sprains, fractures) are not eligible for special testing accommodations under the ADA. Those in need of accommodations should contact FINRA for information about a possible special testing arrangement that can be handled on a case-by-case basis.

 

English as a Second Language (ESL)

If English is your second language, you may request additional time for your session when scheduling your appointment. You must provide the location staff with an original letter from your firm on company letterhead indicating that English is your second language when you arrive at the appointment. The letter must also include your name, your Social Security number, the date of the exam, the client ID, and the Series ID, or name of the session you are taking, and bear the original signature of your supervisor/manager. Faxed or photocopied letters will not be accepted as authorization.

 

FINRA-Authorized Delivery Locations


You may schedule an appointment at either a Pearson VUE or Prometric Testing Center:

Holiday Schedule


The following holidays will be observed by all exam/training locations:

  • New Year's Day
  • Martin Luther King Day
  • Presidents' Day
  • Good Friday
  • Memorial Day
  • Independence Day
  • Labor Day
  • Thanksgiving Day
  • Christmas Day

Foreign Exams


For information regarding testing abroad, please refer to International Testing/CE Session Location Sites.

 

Questions/More Information on PROCTOR


If you have questions on PROCTOR enrollments, PROCTOR appointment scheduling problems, or grade reports, inform the appropriate office personnel of your sponsoring firm. They are authorized to deal directly with FINRA Registration & Disclosure (CRD/IARD).

 

Questions on the substantive content of any FINRA-administered exam may be directed to the FINRA Gateway Call Center at (301) 590-6500.