The assumed interest rate (AIR) is a projection of the performance of the securities in the separate account over the life of the variable annuity contract. If the assumed interest rate is 4 percent and the performance of the securities in the separate account is equal to 4 percent, the investor receives the payouts that she expects. Upon passing the exams and registering with FINRA through the sponsoring firm, the candidate is granted a license and becomes a registered representative.

October 26, 2017 11:33 am 11 Comments CATEGORY: Industry News.

And arguably, the problem was actually even worse for the broker-dealers themselves because they would go through all the trouble of evaluating and finding, and hiring, and vetting potential financial advisors and then at best, the BD would have to pay them a stipend while waiting for them to study and take their exams, and at worst, the broker-dealer would bear all the costs of hiring and vetting, and sponsoring, and registering someone for the exams and then they’d go to take their Series 7 and fail, and retake and fail again, and then the broker-dealer just wasted a whole bunch of time and dollars for nothing. Because the investors assume the investment risk, variable annuities are considered securities and must be registered with the SEC.

RECEIVING OUR LATEST RESEARCH AS IT IS RELEASED! The Series 7 Exam qualifies those who pass to work as General Securities Representatives. Minimal basic options questions maybe 3. "Series 7 – General Securities Representative Exam." Many financial advisors getting started in their careers have historically faced the same conundrum: In order to get started with a broker-dealer, you needed to pass your Series 6 or Series 7 exam. 1 question on retirement accounts. Immediate annuity: An investor purchases the annuity with a large sum, and the payouts begin within a couple months. Would like to see how others felt about the series 7 vs the SIE as well. You have to take your time and read the question a few times and all the answers. However, you couldn’t actually start on your Series exam until you got hired by a broker-dealer, so they could sponsor you in the first place! There are 125 questions on the test. Hey all, so I passed SIE, took a week break, then started on the 7. Especially since these days, the best financial planning jobs are virtually always at advisory firms that have some kind of recurring revenue advisory fees, and those firms are virtually all RIAs or at least hybrid RIAs that are focusing more and more on the RIA side of the business. Or Reach Michael Directly: Join 41,457 fellow financial advisors getting our latest research as it's released, and receive a free copy of The Kitces Report on "Quantifying the Value of Financial Planning Advice"! The Series 7 is a four-hour exam. If the wife dies first, the husband receives payments until his death and vice versa.

Additionally, though, the SIE exam doesn’t actually prepare anyone to be/join a Registered Investment Adviser (RIA), because the SIE exam prepares for broker-dealer jobs, not for RIA jobs that require the Series 65 exam instead. And so earlier this year, I think it was a really big deal when FINRA got final approval from the SEC to start offering the SIE exam starting next year. And then heaven forbid, you discover that you couldn’t pass the Series 7 exam and all that time and job searching was wasted. It has 125 questions (plus 10 extra that don’t count toward your score) vs 75 for the SIE …


A self-regulatory organization or a FINRA-member firm—such as a brokerage—must sponsor a candidate who wants to take these exams. The Series 7 exam tests you on the two basic types of annuities: fixed and variable. Two of the most popular are the Series 6 and Series 7 exams. I do know there are people out there who’ve become dissuaded from entering the financial service industry because it was too hard to go through that juggling act of finding a firm to hire you just to see if you’d be able to then get registered and pass the requisite Series exams. Register now to join us LIVE on Tuesday, December 1, at 3:00 pm EST for our CE-eligible webinar, End-Of-Year And 2021 Tax Planning For A Biden Administration. I’m all the way through the material and just doing practice exams / reinforcing weak areas. But the SIE exam will provide the initial pathway to the Series 6 or Series 7 exams… allowing prospective brokers to get started without first getting sponsored.