Registration

• All employees of firms engaged in securities transactions for a financial firm are required to register with the Financial Industry Regulatory Authority -- FINRA. Those required to register include partners, principals, managers, supervisors and salespeople. Each type of registration has its own examination designated by a number. Series 6 and series 7 are salesperson registration types.
  
  

Series 6

• According to the FINRA website, the series 6 license is for an Investment Company Products/Variable Contracts Limited Representative. A series 6 rep can sell mutual funds, variable annuities and variable life insurance products. The series 6 test consists of 100 questions with a time limit of 2 hours and 15 minutes. A representative will also need an insurance license to sell the annuity and insurance products. Series 6 reps often start as insurance agents and add the securities registration to be able to sell variable products and mutual funds.
  
  

Series 7

• FINRA designates series 7 registration for a General Securities Representative. This is the license for a full-service stockbroker. A series 7 registered rep can sell stock, bond, options and private-placement investments as well as packaged investments like mutual funds. The series 7 test consists of 250 questions divided into two three-hour sessions. A series 7 licensed representative can work for a full-service broker, providing investment advice to customers, or with a discount broker, assisting with the placement of stock and option trades.
  
  

Prerequisites

• An individual cannot take either the series 6 or 7 exams without being sponsored by a securities firm registered with FINRA. Registration also requires a background check and fingerprinting. The examinations are comprehensive and most prospective registered representatives take live or at-home study courses to prepare. The Hedge Fund Careers website states that only 67 percent of the applicants who take the series 7 exam pass.