Financial Advisor Series 4 — Questions and Answers
Question 1: Which co-requisite exam must be completed alongside or before the Series 57 to be fully licensed as a Securities Trader?
- SIE (Securities Industry Essentials) (Correct answer)
- Series 7
- Series 63
- Series 24
Correct answer: SIE (Securities Industry Essentials)
All FINRA representative-level qualifications now require the SIE (Securities Industry Essentials) exam as a co-requisite.
Question 2: What is the total number of questions on the Series 65 exam?
- 130 (Correct answer)
- 150
- 110
- 100
Correct answer: 130
The Series 65 consists of 130 questions (125 scored + 5 unscored pretest questions) with a 180-minute time limit.
Question 3: An investment adviser representative (IAR) in most states can waive the Series 65 requirement by holding which professional designations?
- CFP, CFA, or CPA (active) (Correct answer)
- ChFC or CLU only
- FINRA Series 7 alone
- No designations qualify for a waiver
Correct answer: CFP, CFA, or CPA (active)
Most states waive the Series 65 requirement for individuals holding active CFP, CFA, CPA, ChFC, CLU, or PFS designations.
Question 4: The Series 7 exam was restructured in 2018 to become a 'top-off' exam. What does this mean?
- Candidates must first pass the SIE before taking the Series 7 (Correct answer)
- The Series 7 now covers fewer topics than before
- The exam is only available to candidates already registered at a firm
- Passing Series 7 no longer requires a sponsor
Correct answer: Candidates must first pass the SIE before taking the Series 7
The 2018 restructuring created the SIE as a prerequisite baseline exam; the Series 7 became a 'top-off' that builds on SIE knowledge.
Question 5: Which Series exam qualifies a person to act as a municipal securities representative?
- Series 52 (Correct answer)
- Series 53
- Series 54
- Series 50
Correct answer: Series 52
The Series 52 (Municipal Securities Representative) qualifies individuals to engage in the purchase and sale of municipal securities.
Question 6: Under current FINRA rules, which entity must sponsor a candidate for the Series 7 top-off exam?
- A FINRA member firm (Correct answer)
- Any accredited college or university
- The SEC directly
- NASAA on behalf of a state
Correct answer: A FINRA member firm
Only a FINRA member firm can sponsor a candidate for top-off qualification exams like the Series 7 by filing a Form U4.
Question 7: A rep has a Series 7 and Series 63. They want to charge advisory fees instead of commissions. What additional license do they need?
- Series 65 (Correct answer)
- Series 66
- Series 6
- Series 24
Correct answer: Series 65
To charge fees for investment advice as an IAR, a Series 7 holder must add Series 65 (since Series 66 would replace Series 63, not add to an existing Series 63).
Financial Advisor Series 4
Which co-requisite exam must be completed alongside or before the Series 57 to be fully licensed as a Securities Trader?