Preparing for the FINRA Series 26 exam can be a crucial step for individuals aspiring to become limited principals in the financial services industry. This exam, also known as the Investment Company and Variable Contracts Products Principal Exam, tests the knowledge and skills required to supervise and manage certain aspects of a firm’s business. To help candidates thoroughly prepare, we’ve compiled a comprehensive list of the most commonly asked questions and important details about the exam. From understanding the difficulty level and preparation time to exploring career prospects and retake policies, this guide aims to address everything a candidate might need to know to succeed. The exam syllabus and content outline for Series 26 can be located here.
Register your Series 26 exam at the official FINRA site here.
What is the FINRA Series 26 exam?
The FINRA Series 26 exam, also known as the Investment Company and Variable Contracts Products Principal Exam, is designed to assess the competency of entry-level principals to supervise and manage the investment banking activities and variable products of a firm. Passing this exam allows individuals to oversee the sales activities of investment companies and variable contracts products.
What topics are covered in the Series 26 exam?
The Series 26 exam covers topics such as regulatory fundamentals and business development, evaluating and approving customer accounts, supervising sales practices and general supervision. Specific areas include regulatory framework, sales practices, compliance requirements, and product knowledge relating to investment companies and variable contracts.
How many questions are on the Series 26 exam?
The Series 26 exam consists of 110 multiple-choice questions, of which 100 are scored. The additional 10 questions are pretest items and do not count towards the final score. Candidates are given two hours and 45 minutes to complete the exam.
What is the passing score for the Series 26 exam?
To pass the Series 26 exam, candidates must achieve a score of at least 70%. This means correctly answering at least 70 out of the 100 scored questions.
How long is the Series 26 exam?
The Series 26 exam duration is two hours and 45 minutes. During this time, candidates must complete 110 multiple-choice questions.
How much does it cost to take the Series 26 exam?
The cost to take the Series 26 exam is $175. This fee is paid upon registration for the exam.
How difficult is the Series 26 exam?
The Series 26 exam is considered moderately difficult. It requires a solid understanding of regulatory requirements, supervisory practices, and product knowledge related to investment companies and variable contracts. Adequate preparation and study are essential to pass the exam.
What is the best way to prepare for the Series 26 exam?
The best way to prepare for the Series 26 exam includes studying official FINRA materials, using study guides and practice exams, attending review courses, and focusing on understanding key regulatory concepts and supervisory practices. Consistent study over a period of several weeks is recommended.
How much time should I allocate for studying for the Series 26 exam?
Candidates should allocate approximately 4-6 weeks of study time, dedicating 10-15 hours per week. This timeframe allows for thorough review and understanding of the material, practice exams, and reinforcement of key concepts.
Are there any prerequisites for taking the Series 26 exam?
Yes, candidates must hold a Series 6 or Series 7 license before taking the Series 26 exam. These licenses cover basic investment knowledge and are prerequisites for becoming a principal.
What study materials are recommended for the Series 26 exam?
Recommended study materials for the Series 26 exam include FINRA’s official study guide, online courses, practice exams, and textbooks specifically designed for the Series 26. Additionally, using study aids like flashcards and joining study groups can be beneficial.
Can I take the Series 26 exam online?
No, the Series 26 exam must be taken at an authorized testing center. FINRA requires in-person proctoring to ensure the integrity of the exam process.
Where can I take the Series 26 exam?
The Series 26 exam can be taken at various Prometric testing centers across the United States and internationally. Candidates can select a convenient location when scheduling their exam.
What happens if I fail the Series 26 exam?
If you fail the Series 26 exam, you must wait 30 days before retaking it. After a second failure, there is a 30-day waiting period again. Following a third failure, the waiting period increases to 180 days. There is no limit to the number of times you can retake the exam.
How many times can I retake the Series 26 exam?
There is no limit to the number of times you can retake the Series 26 exam. However, after each failure, you must observe the mandatory waiting periods: 30 days after the first and second attempts, and 180 days after the third attempt and any subsequent attempts.
What are the main challenges candidates face when preparing for the Series 26 exam?
The main challenges include understanding and memorizing the regulatory requirements, supervisory practices, and detailed knowledge of investment products. Balancing study time with work commitments and finding high-quality study materials can also be challenging.
What are the career opportunities after passing the Series 26 exam?
Passing the Series 26 exam qualifies individuals to become limited principals, allowing them to supervise the sale of investment company products and variable contracts. This can lead to roles such as branch manager, compliance officer, or other supervisory positions within financial firms, enhancing career progression and responsibilities.
How does the Series 26 exam compare to other FINRA exams?
The Series 26 exam is specialized for individuals overseeing the sale of investment companies and variable contracts. It is less comprehensive than exams like Series 24, which covers a broader range of supervisory responsibilities. However, it is more specialized than the Series 6 or 7, focusing specifically on the supervisory aspects of investment company products and variable contracts.
What roles require a Series 26 license?
Roles requiring a Series 26 license include branch manager, compliance officer, and other supervisory positions responsible for overseeing the sales activities of investment company products and variable contracts. This license is essential for those aiming to manage and supervise these specific product areas within a financial firm.
