Financial Industry Regulatory Authority (FINRA) is an organization that sets the criteria and enforces the rules for securities licensing of financial and investment advisors, including the requirements and record-keeping of audit firms and broker-dealers. Generally, investment advisors are allowed to engage in activities like estate planning, investment advising, tax services, investment management, and many more.
Here are some facts you need to know about FINRA securities licensing exams.
Establishment of FINRA
The organization was established back in 2003 to provide professional financial and investment advice to people from all walks of life.
Initially, FINRA simply regulated those who offered investment advice, and they were mainly brokers and financial advisers. Over time, the market situation and the needs of the people have changed, and so have the organization’s goals. Since then, several rules and regulations were formulated regarding the licensing of highly-driven investment advisers.
What is FINRA Licensing?
FINRA licensing enables underserved people to get securities licenses and become knowledgeable in developing financial stability through smart investment decisions as per the guidelines that comply with the foundation’s advocacy, including the education, tools, and information they provide investors about the best market practices. It involves standard methods that focus on protecting investors and market integrity.
What is The Purpose of FINRA Licensing?
The primary purpose of FINRA is to regulate the financial advisors’ and investors’ activities, and they set a lot of rules with respect to how they can engage in their businesses. This organization also defines different licenses that they allow their licensees to have, and it also sets minimum qualification standards for all kinds of licensure.
Who Needs a FINRA License?
If you decide to engage in the stock market, you will need to know all the facts in the financial securities business. You need to understand the movements in the market and how different financial services work. It deeply involves learning the terminologies the investment advisers use and how they make their estimates in the market.
Furthermore, it is important for anyone who wishes to be involved in the investment field to be familiar with all of the rules and regulations related to their business.
More importantly, if you are involved with securities business in your firm, you must be registered with FINRA by passing the qualifications exam. The qualifications exam will prove your competence in performing certain securities responsibilities to your firm or customer.
To learn more about FINRA’s Series 7 exam difficulty, you can visit this link to get some important pointers.
To Wrap It Up
As someone seeking investment advice or planning to provide securities services, you should understand how the marketplace works and what is required to succeed in the financial business. You should also explain to any investor what a financial and investment advisor is and how they provide their services. It is essential for you to have a good understanding of the market and how it relates to the entire economy.
Before you can prepare for the qualifications exams, you must complete and pass all the requirements. It will definitely help to know the basic facts about the FINRA licensing exams. However, your firm can file the registration documents with FINRA to schedule your qualifications exam date.
If you want a higher chance of passing the exam, you can visit Professional Exam Tutoring’s website and enroll in their video courses. Just click on the link to check out their site.