Key Takeaways
- Series 9/10 exams qualify securities sales supervisors.
- Series 9 focuses on options trading supervision.
- Series 10 covers broader general securities oversight.
- 70% passing score required on both exams.
What is Series 9/10?
The Series 9/10 is a FINRA qualification consisting of two exams that certify individuals to supervise the purchase and sale of nonexempt securities, including options and general securities. Passing both exams is required to become a limited securities principal authorized to oversee sales practices and compliance within brokerage firms.
This license enables you to manage activities related to options trading as well as broader securities supervision.
Key Characteristics
The Series 9/10 exam covers a range of supervisory responsibilities essential for managing securities sales teams. Key features include:
- Two-part exam: The Series 9 focuses on options trading supervision, while the Series 10 covers general securities supervision and personnel management.
- Prerequisites: Candidates must pass the Series 7 and Securities Industry Essentials (SIE) exams and be sponsored by a FINRA member firm.
- Exam length and format: The Series 9 contains 60 questions with a 90-minute time limit; the Series 10 has 155 questions over 4 hours.
- Passing score: Candidates must score at least 70% on both exams to qualify.
- Supervisory scope: Includes overseeing client accounts, sales practices, and compliance with regulations governing options and general securities.
How It Works
The Series 9/10 exams assess your knowledge and ability to supervise securities sales and options trading effectively. You’ll be tested on regulatory requirements, account management, and ethical sales practices. The exams emphasize real-world supervisory scenarios to ensure you can manage compliance risks and guide your team properly.
After passing, you can oversee activities such as opening and maintaining customer accounts, supervising communications with the public, and ensuring adherence to rules around options trading, including obligations related to call options. This role demands a thorough understanding of both securities products and regulatory obligations.
Examples and Use Cases
Obtaining the Series 9/10 license is critical for supervisors in brokerage firms that handle complex securities transactions. Examples include:
- Airlines: Supervisors managing sales of stock for companies like Delta must understand securities regulations to oversee trading compliance effectively.
- Investment guidance: Professionals often combine this qualification with knowledge from resources like the best online brokers guide to choose platforms that support regulatory compliance.
- Exchange-traded funds: Supervisors may also oversee sales involving ETFs, making familiarity with the best ETFs essential for advising sales teams.
Important Considerations
When preparing for the Series 9/10 exams, focus on both options regulation and broader sales supervision topics to ensure well-rounded expertise. Since the exams cover complex rules, especially regarding obligations in options trading, thorough study and practical experience are crucial.
Passing these exams significantly enhances your career opportunities in securities supervision but requires ongoing commitment to stay current with regulatory changes and continuing education requirements.
Final Words
The Series 9/10 exams are essential for those aiming to supervise general securities and options trading. Assess your readiness and schedule your exam within the 120-day window to advance your credentials efficiently.
Frequently Asked Questions
The Series 9/10 is a two-part FINRA exam that qualifies candidates to supervise the purchase and sale of nonexempt securities. Passing both exams grants the Series 9 license, designating you as a limited securities principal authorized to oversee sales activities.
The Series 9 exam focuses primarily on options trading supervision, including options regulation, supervising the opening and maintenance of customer options accounts, and overseeing sales practices related to options.
The Series 10 exam covers broader supervisory responsibilities across general securities, including supervising personnel, customer accounts, sales practices, communications with the public, and additional topics like hiring and municipal securities regulation.
Candidates must be at least 18 years old, have passed the Series 7 and Securities Industry Essentials (SIE) exams, and be sponsored by a FINRA member firm to be eligible to take the Series 9/10 exams.
The Series 9 exam includes 55 scored multiple-choice questions plus 5 unscored pretest items, while the Series 10 exam has 145 scored questions with an additional 10 unscored pretest items.
Both the Series 9 and Series 10 exams require a minimum passing score of 70%. For example, on the Series 9, you must correctly answer at least 39 out of 55 scored questions.
Yes, candidates may take the Series 9 and Series 10 exams in any order, but both must be completed within a 120-day enrollment period.
Passing the Series 9/10 qualifies individuals to become brokerage branch managers or securities sales supervisors, ensuring they have the expertise to oversee sales activities involving corporate, municipal securities, and options trading.
