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What License Do You Need To Sell Variable Annuities – The Series 7 exam allows the holder to sell all types of securities products except commodities and futures. Formally known as the General Securities Representative Qualification Examination, the Series 7 exam and its license are administered by the Financial Industry Regulatory Authority (FINRA).
Stockbrokers in the United States are required to pass the Series 7 exam to be licensed to trade. The Series 7 exam focuses on investment risk, taxes, equity, and debt instruments; Interactions with clients for packaged securities, options, retirement plans, and potential securities industry professionals. This introductory-level exam assesses the candidate’s knowledge of basic mortgage industry information, including basic concepts for working in the industry.
What License Do You Need To Sell Variable Annuities
The purpose of the Series 7 license is to set the standard of qualification for a registered representative or stockbroker to work in the securities industry. A Series 7 license is an essential requirement for an entry-level broker. The licensing exam covers a wide range of financial terms and topics as well as securities regulations.
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Candidates who pass the Series 7 exam can trade many securities such as stocks, mutual funds, options, municipal securities, and floating contracts. A Series 7 license does not cover selling real estate or life insurance products. In addition to obtaining a Series 7 license, many states require registered representatives to pass the Series 63 exam, also known as the Uniform Securities Agent State Law Exam.
Beginning October 1, 2018, Series 7 candidates are required to take the Securities Industry Essentials (SIE) exam as well as take the Series 7 exam for general securities registration. According to FINRA, the SIE is an introductory-level exam that “assesses a candidate’s knowledge of basic securities industry information, including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry market, regulatory agencies and their actions; and prohibited practices.” .” If you need more information on the SIE, FINRA’s SIE Exam Content Outline provides more details.
Candidates wishing to take the Series 7 examination must be sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm. A member firm must file Form U4 (the same application for securities industry registration or transfer form) for a candidate to be registered for the licensing examination. Non-FINRA members must use the Test Enrollment Service System (TESS) to register for the exam. FINRA regulates the activities of securities firms and registered brokers, ensuring that anyone selling securities products is qualified and vetted.
Candidates wishing to take the Series 7 examination must be sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm.
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The Series 7 exam has 125 multiple choice questions, lasts 225 minutes, and costs $300. The passing score is 72%.
Prior to October 1, 2018, the Series 7 exam consisted of 250 questions covering five major work tasks. The exam duration was six hours, had no prerequisites, and cost $305. 72% marks were required to pass.
FINRA does not provide candidates with a physical certificate as proof of examination completion. Current or prospective employers who wish to view proof of completion should access this information through FINRA’s Central Register Depository (CRD).
Completion of the Series 7 exam is a prerequisite for many other securities licenses, such as the Series 24, which allows the candidate to supervise and manage broker activities.
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The offers appearing in this table are from partnerships from which compensation is received. This compensation can affect how and where listings appear. Excludes all offers available in the market. Variable life insurance products allow a portion of your premium to be allocated to the insurance company’s investment fund, allowing your beneficiaries to receive tax-free growth benefits if the fund grows.
Variable universal life insurance products have similar investment opportunities with some additional features. These whole life policies allow you to invest the cash value and offer flexible premiums and flexible death benefits.
In a variable life insurance policy, the bulk of the premium is invested in one or more separate investment accounts, with the opportunity to choose from a wide range of investment options. You can choose from fixed income, stocks, mutual funds, bonds, and money market funds. Additionally, the interest earned on the account increases with the cash value of the account. Risk tolerance and investment objectives determine the amount of risk.
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Typically, insurers have professional investment managers overseeing the investments. As a result, you will be charged an administration fee. Therefore, the overall asset performance of the investment is usually the main concern.
Variable universal life (VUL) insurance, as the name suggests, is a policy that combines variable and universal life insurance (ie, flexible variable life insurance). It is one of the most popular insurance policies because it gives you the option to invest and change insurance coverage easily.
Like universal life insurance, you can decide the amount and frequency of premium payments within certain limits. You can also make lump sum payments within certain limits or use your accumulated cash value towards premium payments.
The two life insurance products are very similar, so it can be difficult to choose which one is right for you. The key to both of these products is that they have variable death benefits, which makes them attractive to people who believe the market will produce favorable outcomes. To choose between the two, answer these questions:
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It is important to note that both of these policies require you to take the investment risk in your life insurance. Depending on market conditions, your beneficiaries may receive more, or they may receive less.
A variable life insurance policy allows you to use investments to fund your life insurance. The potential for higher death benefits exists if the markets cooperate, but if they do not, the benefits may be significantly lower.
Variable life insurance lets you choose how to invest for your life insurance, and allows the cash value of the policy to grow.
Variable life insurance comes with the inherent risk of investing within the fund. You have the freedom to choose the assets you want, but if they don’t perform, your returns, and thus your profits, can be significantly reduced.
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Your life insurance coverage needs may change over time, and variable life insurance products do an excellent job of factoring in these potential changes. As a result, variable life and VUL policies can create a hedge against inflation if they outpace it.
For some, controlling investments through variable life provides a desirable edge, while others may prefer VUL for its greater flexibility. Next to mortgage and insurance regulation is variable line broker regulation. These dually licensed professionals need to comply with multiple regulatory bodies to get started – no easy task.
To appreciate their pain, let’s look at how someone can qualify to sell variable line products, and what licenses they must maintain in order to maintain a position ready to sell. (Keep in mind this is not advice – you need to follow the rules and standards in your jurisdiction and industry. Got it? Great.)
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To begin, we will examine the home security aspect. The mortgage side of the home for variable line brokers is regulated by the Financial Industry Regulatory Authority, or FINRA, which operates under the direction and guidance of the Securities and Exchange Commission (SEC).
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The first thing you should do if you’re just starting out is take the securities industry required exam.
The Securities Industry Essentials Exam, or SIE, is the basic exam that any variable line producer — or, really, anyone looking to handle investments — needs to pass to get a foot in the door.
The SIE is a standardized test administered by FINRA, and is a precursor to other possible tests you may take through FINRA. The exam itself takes one hour and 45 minutes and is 75 questions long. As the name suggests, these 75 questions cover the basics of the securities industry.
By demonstrating your knowledge of the compound interest formula and the law of supply and demand in the SIE by answering basic questions, you can earn yourself the right to answer specific questions about hedge fund regulation on exams like the Series 7 or any other “top”. -closed” test.
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While you do have to pay to take the SIE, this test has the lowest barrier to entry of all FINRA exams because you don’t have to be “sponsored” by any type of investment firm.
Most FINRA series exams, or indeed anything beyond the SIE, require “corporate sponsorship,” meaning in this case an existing FINRA member firm reporting to FINRA that you are with them. Often, the sponsoring firm will also pay for your exam. This allows FINRA to ensure that anyone conducting a non-SIE examination has cause and
