Financial Advisor Series 5 — Questions and Answers
Question 1: Which Series exam is required for a person to act as a direct participation programs (DPP) representative?
- Series 22 (Correct answer)
- Series 6
- Series 7
- Series 39
Correct answer: Series 22
The Series 22 (Direct Participation Programs Representative) qualifies individuals to sell interests in limited partnerships and other DPPs.
Question 2: Which principal-level exam is required to supervise Series 22 (DPP) registered representatives?
- Series 39 (Correct answer)
- Series 24
- Series 26
- Series 53
Correct answer: Series 39
The Series 39 (Direct Participation Programs Principal) is the supervisory counterpart to the Series 22 representative exam.
Question 3: The SIE (Securities Industry Essentials) exam can be taken by which of the following individuals?
- Anyone 18 or older, even without firm sponsorship (Correct answer)
- Only individuals sponsored by a FINRA member firm
- Only individuals with a bachelor's degree in finance
- Only current employees of broker-dealers
Correct answer: Anyone 18 or older, even without firm sponsorship
The SIE is open to anyone 18 years or older and does not require firm sponsorship, making it accessible to students and career changers.
Question 4: A registered representative's Series 7 registration is terminated by their firm. If they do not re-associate with a new firm within 2 years, what happens?
- They must retake and pass the Series 7 exam to re-register (Correct answer)
- Their license is permanently revoked
- They must file a Form U5 and wait 90 days
- They retain their registration indefinitely with FINRA
Correct answer: They must retake and pass the Series 7 exam to re-register
After a 2-year break from industry association, the Series 7 qualification lapses and the individual must retake the exam.
Question 5: Which Series exam covers the regulations specific to real estate investment trusts (REITs) sold as registered securities?
- Series 7 (Correct answer)
- Series 22
- Series 52
- Series 4
Correct answer: Series 7
Publicly traded REITs sold as registered equity securities fall under the Series 7 (General Securities Representative) scope.
Question 6: What is the passing score required for the Series 66 exam?
- 73% (Correct answer)
- 70%
- 72%
- 75%
Correct answer: 73%
The Series 66 requires a minimum score of 73% (100 out of 110 scored questions) to pass, which is slightly higher than the Series 7.
Question 7: Which Series exam would a FINRA member firm's compliance officer most likely need to supervise both general securities and options activities?
- Series 24 and Series 4 (Correct answer)
- Series 7 and Series 63
- Series 24 alone
- Series 9/10
Correct answer: Series 24 and Series 4
Supervising general securities requires Series 24, and overseeing options activities as a Registered Options Principal requires a separate Series 4.
Financial Advisor Series 5
Which Series exam is required for a person to act as a direct participation programs (DPP) representative?