The Securities Industry Essentials (SIE) Exam is a foundational exam administered by FINRA and is required for anyone looking to enter the financial services field.
While passing the SIE Exam alone does not qualify you to work in securities or register with a FINRA member firm, it is a required first step toward becoming licensed. FINRA created the SIE Exam to streamline the licensing process and ensure all industry professionals share a consistent baseline of securities knowledge.
The SIE Exam Is the Entry Point to the Securities Industry
The SIE Exam is open to anyone 18 years or older and does not require firm sponsorship. This makes it especially appealing to students, recent graduates, and career-changers who want to demonstrate interest in the securities industry before applying for roles.
SIE Exam basics:
- 75 multiple-choice questions
- 105 minutes to complete
- 70% passing score
- No firm sponsorship required
Because you can take the exam independently, passing the SIE signals initiative and commitment to potential employers. It shows that you’ve already invested time and effort into understanding the industry, before day one on the job.
Why FINRA Established the SIE Exam
Before the SIE Exam existed, much of the same foundational content was repeated across multiple Series exams. FINRA introduced the SIE to eliminate this duplication and create a standardized foundation of knowledge for everyone entering the industry.
The SIE Exam focuses on core concepts, including:
- Capital markets and how they function
- Types of securities products and associated risks
- Trading, customer accounts, and prohibited practices
- The regulatory framework governing the securities industry
Passing the SIE demonstrates that you understand the fundamentals clients and firms expect and that your knowledge can be built upon through role-specific licensing.
What Comes After the SIE Exam?
After passing the SIE Exam, you must also pass a qualification (Series) exam to become registered and work in a specific role. Unlike the SIE, qualification exams do require sponsorship from a FINRA member firm.
Your employer will guide you toward the exam that aligns with your role and responsibilities.
Common Qualification (Series) Exams
Each Series exam allows you to specialize in a particular area of the securities industry:
- Series 6 – Investment Company Representative
- Series 7 – General Securities Representative
- Series 79 – Investment Banking Representative
- Series 86/87 – Research Analyst
- Series 99 – Operations Professional
These licenses determine what products you can sell, what advice you can provide, and what functions you can perform within a firm.
To further explore securities career paths, check out our interactive guide and learn more about all your options.
How the SIE Exam Helps You Stand Out to Employers
In a competitive job market, having the SIE Exam already completed can give you a meaningful edge. Employers see SIE completion as proof that you are serious about the industry and prepared to move quickly into role-specific training.
Benefits for employers include:
- Reduced onboarding and training time
- Higher confidence in your ability to pass additional licensing exams
- A demonstrated commitment to professional development
For candidates, it’s a powerful way to separate yourself from applicants who haven’t taken that first step.
What You Can Do with Additional Series Licenses
Some qualification exams allow broader client interaction and product offerings than others.
- Series 7 license holders can sell a wide range of securities, including stocks, bonds, options, mutual funds, and variable annuities.
- Series 63 license holders are authorized to sell securities at the state level and must comply with state securities laws and ethical standards.
- Series 66 license holders are qualified to act as both investment advisor representatives and securities agents, allowing them to provide investment advice and execute securities transactions.
- Series 24 license holders supervise registered representatives, approve firm communications, and oversee compliance with regulatory requirements.
Other Series licenses support more specialized roles, from investment banking and trading to research and private placements.
Preparing for the SIE Exam
Passing the SIE Exam sets the foundation for your entire securities career. With the right preparation, it can also boost your confidence and increase your chances of success on future Series exams.
Securities Training Corporation has helped securities professionals prepare for licensing exams for over 55 years. Their SIE Exam prep courses are designed to simplify complex concepts, reinforce key topics, and help candidates pass on the first attempt.
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FAQs About What is the SIE Exam and Why FINRA Established It
Q: What is the SIE Exam?
A: The SIE Exam (Securities Industry Essentials Exam) is a foundational test administered by FINRA for prospective securities industry professionals. It serves as an introductory-level assessment of basic industry knowledge. Unlike advanced Series exams, the FINRA SIE exam is open to anyone aged 18 or older and does not require sponsorship from a financial firm. While passing is a mandatory first step, it does not strictly qualify you to work in the industry on its own; you must combine it with a specialized qualification exam to become fully registered.
Q: Why did FINRA establish the SIE Exam?
A: FINRA introduced the SIE Exam to streamline the securities licensing process and eliminate redundant testing. Before the SIE existed, core industry concepts were repeated across multiple different Series exams. By creating the SIE, FINRA established a standardized baseline of knowledge that all professionals share, ensuring a consistent foundation for everyone entering the field regardless of their future specialization.
Q: What topics are covered on this securities industry exam?
A: The securities industry exam focuses on four core pillars of knowledge essential for financial services professionals:
- Capital markets and their function
- Types of securities products and their associated risks
- Trading, customer accounts, and prohibited practices
- The regulatory framework governing the industry
Mastering these topics demonstrates to employers that you possess the fundamental understanding required to succeed in more advanced roles.
Q: What are the passing requirements and format for the SIE Exam?
A: The exam consists of 75 multiple-choice questions which you must complete within 105 minutes. To pass, you must achieve a score of 70% or higher. Because no firm sponsorship is required, taking this exam is an excellent way for students, recent graduates, and career changers to demonstrate initiative and commitment before applying for jobs.
Q: What happens after I pass the SIE Exam?
A: Passing the SIE Exam is only the first half of the registration process. To engage in specific securities business, you must subsequently pass a “top-off” qualification exam appropriate for your role, such as the Series 7 (General Securities Representative) or Series 6 (Investment Company Representative). Unlike the SIE, these specialized Series exams require sponsorship from a FINRA member firm.
Q: How does passing the SIE help me stand out to employers?
A: Completing the SIE Exam before your first day on the job gives you a significant competitive advantage. It provides proof to employers that you are serious about your career and capable of grasping complex financial concepts. For hiring firms, a candidate who has already passed the SIE represents a reduced training investment and a higher likelihood of passing subsequent licensing exams quickly.
Q: How should I prepare for the SIE Exam?
A: Given that this exam sets the foundation for your entire career, high-quality preparation is essential. Securities Training Corporation (STC) has over 55 years of experience helping professionals succeed. Utilizing expert-led prep courses can simplify complex topics and ensure you pass on your first attempt, positioning you for immediate success in the securities industry.
