The CFP (r) audit is challenging, with an overall pass rate of 62 per cent in 2019. Even if you don’t pass the exam, there are some things you can do to increase your chances of getting it next time.
The CFP Board constantly updates exam weights based on regular work, assignment and analysis, so it is best to verify the weights for each exam you take.
Many people taking the CFP (r) exam pass some rounds of insurance, safety and licensing exams. This raises false expectations about how the audit will be conducted. The insurance and security license exams focus on memorizing, while the exam is about applying this knowledge to real-life situations you encounter in the workplace.
Candidates must sit three tests covering a range of financial topics, including accounting, money management and securities analysis. The institute says candidates must spend more than 300 hours of their studies to pass the exams.
Some 43% of those who took the first exam passed the first exam, while the second and third examinations passed 45% and 56% respectively. Sixty percent of the examinations concern the State Security Act and related rules and regulations. Each series of 63 tests lasts about 75 minutes and consists of 60 multiple choice questions.
The Series 65 license, also known as Uniform Investment Adviser Law Examination, qualifies a person to provide investment and general financial advice to its clients. Passing the Series 65 test qualifies a candidate as an investment advisor or. The audit does not allow a professional to sell securities or offer investment advice.
The Series 63 license also known as the Uniform Securities Agent License is valid for the entire period of time you work for a FINRA member company or for a self-regulatory organization (SRO). The Series 65 license is required for those who intend to provide any financial advice or services on an uncontracted basis. Conference attendees (also known as CFPs or certificates) are exempt from the exam requirements for registering as an investment advisor representative under Series 65.
The Series 63 licensing, also known as Uniform Securities Agent License, allows you to sell securities in a particular state. The series 63 license exam must pass the state version to use your Series 6 license in your state. If you move from one state to another, you must pass your Series 63 exam before you work in the securities or insurance industry of that state.
After becoming a General Securities Representative, which allows a person to sell general investment products and securities on behalf of the financial company they work for, they may be sponsored by a broker-dealer and continue to work for that broker / dealer while retaining a Series 7 license.
There is no conflict of interest for a CFP (r) holding an active Series 7 because he is a sales representative for the brokerage firm he works for. Representatives who hold a Series 3 license tend to specialize in raw materials that have little or no other business.
The series 3 audit takes 150 minutes and covers all types of commodities, options, hedges, margins and other regulations. The 6.6 Series exam includes topics covered in the 63 Series and 65 Series exams, but there is no duplication with Series 7. Much of the material is covered in the Series 7 exam, but many consultants who take the exam and do not receive, or never receive, a Series 7 license have to deal with the investment material covered.
Most securities audits conducted by FINRA and NASAA have a top score of 70 for Series 7, 63-65 for Top Scores of 72, and Series 66 has a top score of 73. The Series 66 exam contains all of the asset material available to candidates for the Series 7 license.
A securities license is a financial certification, and the comparison between Series 7 and Series 66 is a smart thing, as both are very similar at the same time, but very different licenses in terms of thesis and degree difficulty. Series 7 can be considered your general agent license as it is the first test that makes you a broker, and it is also the first real test that takes you on your way to the top in the securities industry. It is also usually the first time that you are listed and checked in as a broker, as this exam allows you to place trades, but it is a very tough exam with a 500-page book that can get in the way of your passing.
I would say that series 7 is about 5 times harder than series 7 and series 66 is about 2 / 3 of the exam time of series 7. The more difficult questions in series 66 overlap with series 63, but contain more content, making them a challenge.
The Series 7 audit is the longest and most difficult securities audit. It lasts 225 minutes and covers all aspects of share and bond prices, trading puts, calls, options and spreads, taking into account ethics, margins, other requirements for account holders and other relevant regulations.
The multiple choice exam consists of 105 multiple choice questions and lasts 135 minutes. The multiple choice test is conducted in conjunction with the North American Securities Administrators Association (NASAA). The exam can last up to six hours and can be completed in two sessions of three hours each.
For those planning to participate in the National Commodity Futures Exam Series 3, FINRA offers candidates the opportunity to take the exam online through the Prometric Proctor platform.
The certification process requires that applicants have different experiences and training. The most common certifications for individuals working in finance or as financial advisors are CFA (Chartered Financial Analyst) and CFP (Credit Financial Planner). Both are designed to inform customers and employers that the owner has received training in certain types of financial work.
Let’s go through the separate charter financial analyst (CFA) and Certified financial planner (CFP) so that you can choose the right for you if you’re looking to find a financial adviser or if you want to certify yourself. A financial advisor advises clients on personal finances, investments and money management. They advise on insurance, estate planning, taxes, savings, retirement, education, economics, cash management, shares and bonds.
A CFP must undergo basic training to qualify as a financial adviser, complete rigorous courses and obtain its CFP designation (Certified Financial Planner) from the Board of Standards. State regulators ensure that financial advisers act lawfully.
