Investment Jobs Securities Licensing Test 2 — Questions and Answers
Question 1: The Series 66 license combines the content of which two exams?
- Series 6 and Series 63
- Series 7 and Series 63
- Series 63 and Series 65 (Correct answer)
- Series 65 and Series 7
Correct answer: Series 63 and Series 65
The Series 66 (Uniform Combined State Law Examination) combines the content of the Series 63 and Series 65 exams.
Question 2: Which license is specifically required to sell variable annuities and variable life insurance products?
- Series 3
- Series 6 (Correct answer)
- Series 22
- Series 51
Correct answer: Series 6
The Series 6 (Investment Company and Variable Contracts Products Representative) license is required to sell mutual funds, variable annuities, and variable life insurance.
Question 3: What does NASAA stand for in the context of securities licensing?
- National Association of Securities and Advisers Act
- North American Securities Administrators Association (Correct answer)
- National Agency for Securities Administration Accreditation
- New Age Securities and Asset Administration
Correct answer: North American Securities Administrators Association
NASAA stands for the North American Securities Administrators Association, which represents state and provincial securities regulators.
Question 4: A broker-dealer principal who supervises registered representatives must hold which license?
- Series 7
- Series 24 (Correct answer)
- Series 65
- Series 14
Correct answer: Series 24
The Series 24 (General Securities Principal) license is required to manage or supervise the investment banking or securities business of a FINRA member firm.
Question 5: How many continuing education credits must most FINRA-registered representatives complete annually?
- 6 hours
- 12 hours
- Firm Element CE is annual; Regulatory Element is every 3 years (Correct answer)
- 24 hours every 2 years
Correct answer: Firm Element CE is annual; Regulatory Element is every 3 years
FINRA's CE program includes a Regulatory Element (required at set intervals) and a Firm Element (annual training determined by the firm).
Question 6: Which US regulation requires broker-dealers to maintain records of all securities transactions for a minimum of three years?
- SEC Rule 17a-4 (Correct answer)
- FINRA Rule 2010
- Sarbanes-Oxley Act
- Dodd-Frank Act
Correct answer: SEC Rule 17a-4
SEC Rule 17a-4 specifies the record retention requirements for broker-dealers, requiring preservation of most records for at least three years.
Investment Jobs Securities Licensing Test 2
The Series 66 license combines the content of which two exams?