Many financial advisors getting started on their careers face the same conundrum: passing the SIE exam and additional FINRA or NASAA series examination before acquiring a license to practice. FINRA broker dealer exams require a sponsorship, where an active, reputable member of FINRA submits your application and pays your exam fees.
Individuals wishing to become private securities offering representatives need to have a series 82 sponsorship before sitting for their examinations. The exam focuses on private securities and private placement transactions, with the license allowing you to trade private placement securities as a primary offering as a broker dealer.
Here are three steps that you may need to undertake to obtain your private securities offering license.
1.Sit for Your SIE
The Securities Industry Essentials (SIE) exam is a corequisite for you to sit for the Series 82 exam. It assesses a candidate’s knowledge of basic security industry concepts. You do not require any FINRA sponsorship to sit for the exam and can comfortably handle it while still in school.
You may have to pass both the SIE and the Series 82 exam to obtain the private security offerings license. After passing your SIE, you may have an open window of four years to obtain a Series 82 sponsorship and sit for your broker dealer exam. After the period lapses, you may have to re-sit your SIE examination as per FINRA rules.
2. Find a Suitable Series 82 Sponsorship
The greatest hurdle for most potential financial advisors is finding a reputable firm to sponsor them for their respective FINRA representative-level exams. You may need to find a member to back you up, fill in your application, and pay your examination fees. The firm conducts a background check on you before filling the FINRA Form U4 and submitting it to the Central Registration Depository.
You may need to research the broker dealer’s culture and values before signing up for their chaperoning services. Networking is an excellent way to finding an opening in an investment bank that would be willing to sponsor your Series 82 exam. Be open to the scrutiny and background checks that the sponsor may have to conduct about you or your independent boutique.
3. Prepare for Your Examination
After the series 82 sponsorship firm deposits your application with FINRA’s CRD, you have a window open for 120 days in which you can sit for your exam. You can schedule your exam with Prometric, a local testing center, or online with a remote proctor. It is advisable to set your examination date as far in advance as possible, giving you ample time to read and prepare for the test.
Most broker dealer sponsorships may supplement you with resource materials that you can use to study for the exam. You can opt for in-house training programs or external trainers to help you practice and read for the test. Passing the test grants you a license to practice private security offerings.
Investment bankers wishing to dive into the world of private securities and placements may have to secure a series 82 sponsorship before sitting for the examination. You may have to complete the SIE exam beforehand and study effectively for your test. To discuss your series 82 sponsorship, reach out to Bridge Capital Associates.