Financial Advisor Series 3 — Questions and Answers
Question 1: A registered representative with only a Series 6 license wants to sell corporate bonds to a client. What must they do first?
- Pass the Series 7 exam (Correct answer)
- Obtain a Series 63 license
- Get written approval from a Series 24 principal
- File a Form U4 amendment
Correct answer: Pass the Series 7 exam
Series 6 only covers investment company products and variable contracts; selling corporate bonds requires the broader Series 7 license.
Question 2: Which Series exam must branch office managers typically hold to supervise registered representatives?
- Series 24 (Correct answer)
- Series 26
- Series 9/10
- Series 4
Correct answer: Series 24
The Series 24 (General Securities Principal) is the standard principal qualification for supervising general securities activities and branch offices.
Question 3: Under FINRA rules, how long does a registered representative's Series 7 license remain valid if they leave a FINRA member firm?
- 2 years (Correct answer)
- 1 year
- 5 years
- Indefinitely
Correct answer: 2 years
FINRA allows a 2-year 'window' during which a former rep can re-associate with a member firm without retaking the Series 7 exam.
Question 4: The Series 26 principal license is the supervisory counterpart to which representative exam?
- Series 6 (Correct answer)
- Series 7
- Series 65
- Series 3
Correct answer: Series 6
Series 26 (Investment Company and Variable Contracts Products Principal) qualifies principals to supervise reps who hold the Series 6 license.
Question 5: Which exam is required for individuals who want to sell commodity futures contracts?
- Series 3 (Correct answer)
- Series 7
- Series 31
- Series 34
Correct answer: Series 3
The Series 3 (National Commodity Futures Exam) is required by the NFA for individuals who solicit or accept orders for commodity futures.
Question 6: A candidate fails the Series 65 for the third time. How long must they wait before their fourth attempt?
- 180 days (Correct answer)
- 30 days
- 90 days
- 365 days
Correct answer: 180 days
After a third failure of any FINRA/NASAA qualification exam, candidates must wait 180 days before attempting the exam again.
Question 7: Which body administers the Series 63, 65, and 66 exams?
- NASAA (Correct answer)
- FINRA
- SEC
- CFTC
Correct answer: NASAA
NASAA (North American Securities Administrators Association) writes and administers the Uniform State Law exams including Series 63, 65, and 66.
Financial Advisor Series 3
A registered representative with only a Series 6 license wants to sell corporate bonds to a client.
What must they do first?