Registration Services

RND prepares and files applications with the SEC, state agencies and the FINRACOMPLIANCE, and handles the registration of principals, officers and representatives. We help you prepare for the preliminary member interview with the FINRACOMPLIANCE, and on occasion will accompany you to the interview on request.

RND also provides supervisory procedures manuals, audit checklists, sample agreements, record keeping forms and other resource materials. Limited service programs are available, tailored to established firms which may only require a compliance audit or a supervisory manual, or which need to add states or new representatives to their roster.

In the present business climate, it isn’t enough to be successful in product selection or sales alone. You must have an effective back office, accounting and compliance program. The most successful firms make these work for them by making it part of their total business plan, and with good reason. The penalties for failing to comply with securities norms and regulations can mean large fines, accounting errors, a ruined reputation or even the abrupt end of a once thriving business.
Series # 3 National Commodity Futures Exam

Series # 6 Investment Company Products Representative

Series # 7 General Securities Registered Representative

Series # 22 Direct Participation Programs Representative

Series # 30 Futures Branch Office Manager

Series # 31 Futures Limited Partnership Representative

Series # 32 Futures – U.K. Representative Exam

Series # 52 Municipal Securities Representative

Series # 63 Uniform State Laws

Series # 65 Registered Investment Adviser

Series # 66 Uniform Combined RIA and State LExam

REGISTERED PRINCIPAL STUDY PROGRAMS:

Series # 4 Registered Options Principal

Series # 8 NYSE General Securities Sales Supervisor

Series # 24 General Securities Principal

Series # 26 Investment Company Products Principal

Series # 27 Financial Operations Principal

Series # 28 Introducing Broker Financial Principal

Series # 53 Municipal Securities Registered Principal

Series # 55 Equity Trader
Futures:
Ethics Programs – 1 Hour and 4 Hour

Independent Study Programs:
Options – Securities – Futures – Brokerage Operations – Margin

SECURITIES AND TRAINING NEEDS!
(818) 657-0288 – (818) 657-0299

Important Numbers:
RND Resources, Inc. (818) 657-0288
(818) 657-0299
Email: dave@finracompliance.com

FINRACOMPLIANCE Member Services (301) 590-6500
FINRACOMPLIANCE Foreign Tests (301) 590-6724
FINRACOMPLIANCE Exams Section (301) 590-6724
(to request alternative arrangements for candidates
MSRB (Municipal Securities Rulemaking Board) (202) 223-9347
NYSE Examination (212) 656-5530
Sylvan Learning Centers (800) 578-6273

NASD EXAMINATIONS

The following is a brief summary of the various NYSE, NASD, NFA , and MSRB exams currently administered by the NASD. Passing score is 70% of the total number of questions for representatives (except for the #3, #8, #39, and #16 where the exams require 70% for each section). Note: The estimate of the number of questions per category is approximate and subject to change. Fees and prerequisites are also subject to change.

Series 3 National Commodity Futures Exam

The National Futures Association (NFA) and the various domestic commodity futures exchanges require this exam for anyone who is going to act as an Associated Person, Commodity Trading Adviser, Commodity Pool Operator, Introducing Broker, or Futures Commission Merchant.
120 Questions
2 ½ Hours
No prerequisite
$75 test fee (Form U-10)
Topics

Futures Trading Theory 13 Questions
Margins, Limits, Settlements 15
Orders, Accounts, Analysis 11
Basic Hedging 11
Financial Hedging 10
Spreads 3
General Speculation 8
Financial Speculation 8
Options 6
Regulations 35

Note: Three other “futures” exams have been created: one for Branch Office Manager(#30), one for individuals who will only sell shares in commodity limited partnerships (#31), and one for U.K. registered brokers who wish to also be registered in the U.S. (#32). Refer to the numbered course description for more detail.

Series 4 Registered Options Principal

The options exchanges, NYSE and the NASD require this test for people who will supervise the day-to-day activities of representatives who conduct business for the public in the options markets.
125 Questions
3 Hours
Series 7 or 42 is a prerequisite
$75 test fee (Form U-4)
Topics

Option Strategies 30 Questions
Contract Characteristics 10
Customer Accounts 60
Business Conduct 25

Series 5 Interest Rate Options

The CBOE (Chicago Board Options Exchange) and the AMEX (American Stock Exchange) require this test for any representative who wishes to transact business ONLY in options on interest rate instruments on those exchanges (e.g., T-Bills, T-Bonds, T-Notes, etc.).
50 Questions
1.5 Hours
No prerequisite
$50 test fee (Form U-4)

Series 6 Investment company and Variable contacts Products Representative

This exam is required for people who will only offer investment company products such as mutual funds and closed-end funds and for those who will sell variable annuity contracts and variable life insurance.
100 Questions
2 ¼ Hours
No prerequisite
$60 test fee (Form U-4)
Topics

Markets, Risks, Policies 20 Questions
Open End Companies, Accounts
And Services 40
Variable Annuities and
Retirement Plans 20
Regulations 20

Series 7 General Securities Registered Representative

This exam is a New York Stock Exchange generated exam accepted by the NASD for anyone employed by a broker/dealer who will trade all types of securities. This is the most comprehensive of the registered representative exams (i.e., it essentially covers the #6, #22, #42, #52, and the #62!!). some states require this exam for investment adviser registration.
250 Questions
6 Hours (Given in two three-hour sessions of 125 questions each)
No prerequisite
$200 test fee (Form U-4)
Topics

Equity Securities 10 Questions (approximate)
Debt Securities 60
Options 40
Trading Markets 20
Customer Accounts 20
New Issues 15
Investment Companies 25
Taxes 20
Regulations 25
Analysis 15

Series 8 General Securities Sales Supervisor

Any person who manages or supervises the daily activities of a NYSE-member broker/dealer’s sales staff is required to take this examination by the NASD, NYSE, the various options exchanges, and the MSRB (Municipal Securities Board). The test covers topics in the #4, #24, and #53 exams. Special Note: If you fail a portion/module of this exam you may retake that specific module.
200 Questions – 2 parts of 100 questions each
6 Hours – 70% on each part
Prerequisite Series #7
$110 test fee (Form U-4)
Topics

Part 1 – Regulation of Options and municipal securities
Part 2 – Securities offerings
Sales practices and communications with the public
Customer accounts
Operation of securities markets

Soon, you will register for the # 9 and # 10 – there will no longer be an “# 8” exam.

Series 9 Options Module exam for the Series 8

“Part 1”
55 Questions
1 ½ Hours
Prerequisite series # 7
$60 test fee (Form U-4)
Series 10 General Securities Group Exam for the Series 8

“Part II”
145 Questions
4 Hours
Prerequisite Series # 7
$75 test fee (Form U-4)

Series 11 Assistant Representative – Order Processing

This exam is for sales assistants who accept and submit customer orders that are unsolicited. This is for NASD member firms only, NYSE member firms cannot use this exam. The assistant cannot solicit orders, give investment advice, or solicit new accounts.
50 Questions
1 Hour
No prerequisite
$60 test fee (Form U-4)
Topics

Equity, Debt, & Other Securities 15 Questions
Customer Accounts 10
Markets & Order Processing 20
Regulations 5

NYSE 12 NYSE – Only Branch Manager
100 Questions
3 Hours
$75 test fee (Form U-4)

Series 14 NYSE – Only Compliance Officer

This exam is for those candidates who act as compliance officer for New York Stock Exchange registered firms.
100 Questions
3 Hours
No prerequisite
$100 test fee (Form U-4)

Series 14A Compliance Official for Specialist Firms

This exam is for those who had daily compliance responsibility for their specialist firm. The test covers NYSE and SEC rules, Trading Surveillance, Operations, Credit Rules, and Reports and Forms.

 

Series 15 Foreign Currency Options

This exam is for a representative who wants to trade foreign currency options on the Philadelphia Stock Exchange.
50 Questions
1 Hour
No prerequisite
$60 test fee (Form U-4)

Series 16 NYSE Supervisory Analyst

This exam is for those who supervise the analytic staff of a NYSE member broker dealer. There are two 50 point sections, general knowledge and technical, that must be passed at the same sitting. If one part is failed the entire test must be retaken.
100 Questions
3 Hours
No prerequisite
$60 test fee

Series 17 Limited Registered Representative

This exam is for individuals who are currently registered representatives in the U.K., under the Securities and Futures Authority. Topics include: advertising, customer suitability, regulations, orders, markets, customer accounts.
90 Questions
2 Hours

Series 22 Direct Participation Programs Representative

This exam is designed for people who wish to work with limited partnerships only, often referred to as direct participation programs or tax shelters.
100 Questions
2 Hours 15 Minutes
No prerequisite
$60 test fee (Form U-4)

Topics

DPP Offerings 25 Questions
Types of DPPs 24
Taxation 35
Regulations 16

Series 24 General Securities Principal Exam

Any person who manages or supervises representatives in investment banking, training, solicitation, as well as the general conduct of business operations is required by the NASD to sit for this exam. Some states require this exam for investment adviser registration.
125 Questions
3 Hours
Prerequisite Series # 7 or combination of 6, 22, 62, and 72
$75 test fee (Form U-4)
Topics

Investment Banking 20 Questions
Trading and Market Making 25
Customer Accounts 25
Investment Companies and
Retirement Plans 10
Sales Supervision 30
Financial Responsibility 15

NOTE:
Changes are pending for this exam. The test will become 150 questions with the same 3 Hour time period and will include questions covering Equity Trader topics, March 2000 is targeted.

Series 26 Investment Company and Variable Contracts Products Registered Principal

This is a limited principal registration for those who will manage or supervise representatives whose activities are limited to the offer, sale, or purchase of mutual funds, closed end funds, or the sale of variable annuity contracts. Some states require this exam for investment adviser registration.
100 Questions
2 Hours
Prerequisite series # 7 or # 6
$75 test fee (Form U-4)
Topics

Regulations of Investment Companies 23 Questions
Client Account Procedures 16
Sales Supervision; General Supervision
Of Employees; Regulatory Framework
Of the NASD 47
Compliance with Financial Responsibility
And Recordkeeping Rules 14

Series 27 Financial and Operations Principal

Any person involved in the financial and operational management of a NASD member firm (including the chief financial officer) must pass this exam. The tasks of this individual include preparing and attesting to the accuracy of the Securities and Exchange Commission’s FOCUS Reports.
100 Questions Part 1 (multiple-choice overview)
40 Questions Part II (net capital computations)
3 ½ Hours
No Prerequisite
$75 test fee (Form U-4)
Topics

Net Capital 33 Questions
Customer Protection 26
B/D Financial Reporting 16
Funds and Securities Held by B/D 7
Federal Reserve Board Rules 11
Uniform Practice Rules 7

Series 28 Introducing Broker/Dealer Financial and Operations Principal

A Person who acts as the financial officer of an introducing broker/dealer takes this exam. It is more limited in scope then the # 27, as it does not include questions on customer accounts.
75 Questions Part 1 (multiple choice overview)
25 Questions Part II ( net capital computations)
3 Hours
No prerequisite
$75 test fee (Form U-4)
Topics

Net Capital 49 Questions
Customer Protection 11
B/D Financial Reporting 35
Funds and Securities held by B/D 0
Federal Reserve Board Rules 5
Uniform Practice Rules 0

Series 30 Branch Office Manager Futures

This test is required for those for those who act as a branch office manager for a commodity futures firm. The test is required for those who have less than 2 registered years of experience in the business. Certain exemptions exist.
50 Questions
1 Hour
No prerequisite
$60.00 test fee (Form U-10)
Topics

General Rules 12 Questions
CTA/CPO General 5
CTA/CPO Discretionary Rules 6
Rule 2-30 2
Fees Charged by CTA/CPOs 2
Fees Charged by IB/FCM 1
IB General 4
Accounts 8
Discretionary Accounts 5
Rule 2-29 5

Series 31 Futures Managed Funds

This test is required for those who wish to receive trailing commissions on commodity limited partnerships, commodity pools, or managed accounts guided by Commodity Trading Advisers. Individuals who take this exam in lieu of the Series #3 cannot open individual futures trading accounts.
45 Questions
1 Hour
$60.00 test fee (Form U-4)
Topics

General Market Knowledge 12 Questions
Regulations 9
CTA/CPO Regulations 5
CTA/CPO Disclosure 8
Know your Customer 2
Upfront Fees 7
Promotional Material 2

Series 32 Limited Futures Exam – Regulations

This test is required for those individuals registered with the Securities and Futures Authority (“SFA”) in the United Kingdom (as a General Securities Representative of a Futures and Options representative and who have taken and passed the SFA’s exams) to meet U.S. National futures Association (“NFA”) requirements. This exam is an abbreviated version of the NFA # 3 exam and focuses on U.S. regulatory requirements. It will allow the individual to register in the U.S. as an Associated Person.
35 Questions
45 minutes
No prerequisites
$65 test fee (Form U-10)

Series 33 Financial Instruments Exam – Futures

This exam is for those General Securities Representatives who will limit their futures-related activities to stock index, interest rate, and foreign currency futures and options contracts.
60 Questions
80 Minutes
Prerequisite for registration is a Series # 7
$60 test fee (Form U-10)

Series 37 Canadian Registered Representative – General Securities

This examination is required for those Canadian securities representatives who wish to become registered with a U.S. broker-dealer. The #37 contains the basic 45 questions covered in the #38 but includes an additional 45 option questions. Those taking the 37 who wish to sell municipal securities must also pass the Series # 52.
90 Questions
2 ½ Hours
Prerequisite: Registration as a Canadian registered representative.

Series 38 Canadian Registered Representative – Limited Securities

This examination is required for those Canadian securities representatives who wish to become registered with a U.S. broker-dealer. The #38 contains basic questions covering U.S. securities and the respective laws. Options are not covered in this exam, hence, it is a limited registration. Those taking the 38 who wish to sell municipal securities must also pass the Series #52. Those Canadian reps who have already passed the Canadian option sales exam may take the Series #38.
45 Questions
75 Minutes
Prerequisite: Registration as a Canadian registered representative.

Series 39 Direct Participation Programs Principal

This limited principal exam is for any person who will manage or supervise representatives who offer and sell only direct participation programs (i.e., tax shelters or limited partnerships). You must have 70% of each section to pass, otherwise you must sit for the entire exam again.
70 Questions (Part I on supervision and structure)
30 Questions (Part II on compliance with financial responsibility)
2 Hours
Prerequisite #22 of #7
$75 test fee (Form U-4)
Topics

Structure of DPPS 18 Questions
Underwriting 30
Supervision 20
Financial Responsibility 20
NASD Rules 12

Series 42 Registered Options Representative

This exam is currently being structured by the NASD and is not available yet. The guideline for the exam, however, is for any person working for any agent who offers, sells, or buys listed securities options only.
50 Questions
1 ½ Hours
Prerequisite #62 or #72
$60 test fee (Form U-4)

Series 47 Japan Module General Securities Registered Representative

Japanese representatives in good standing with the Japan Securities Association and who are Class-1 Sales Representatives must sit for this exam to affiliate with a U.S. broker-dealer. If the representative wishes to sell municipal bonds, they must sit for the #52.
160 Questions
4 Hours
Prerequisite: Class-1 Sales Registration and good standing with the JSA

Series 52 Municipal Securities Representatives

This limited representative exam is required by the MSRB (Municipal Securities Rulemaking Board ) for any person working as an agent for a broker-dealer who handles municipal securities (bonds) only.
100 Questions
3 Hours
No prerequisite
$60 test fee (Form U-4)

Series 53 Municipal Securities Principal

This limited principal exam is required by the MSRB for any person who manages representatives who handle municipal securities only.
100 Questions
3 Hours
Prerequisite #52 or #7
$75 test fee (Form U-4)
Topics

Federal Regulations 5 Questions
General Supervision 24
Sales Practices 22
Origination and Syndications 23
Trading Strategies 8
Operations 18

Series 55 Limited Representative – Equity Trader

Every individual who functions as an “Equity trader”, as defined by the NASD must pass this exam. The exam is supposed to assure that traders have more consistent understanding of securities industry rules and practices. The 55 is not a stand-alone exam. Individuals requesting registration as an Equity Trader also will be required to have the Series 7 or Series 62. After the SEC approves the Series 55 those who currently function as traders will be granted a 2-year period in which to pass the exam. New traders must satisfy the qualification requirements before functioning as an Equity Trader.
90 Questions
3 Hours
Prerequisite #62 or #7
$60 test fee (Form U-4)
Topics

NASDAQ Market and Market Maker Activities 40 Questions
Automated Execution and Trading Systems 10
Trade Reporting Requirements 13
Securities Industry Regulations 27

Series 62 Corporate Securities Limited Representative

This limited exam is for any person who works for a broker-dealer and will transact business in corporate securities only. It does not cover options on corporate securities! Some states require this exam for investment adviser registration.
100 Questions
2.25 Hours
No prerequisite
$60 test fee (Form U-4)
Topics

Characteristics of corporate securities 31 Questions
Market for corporate securities 23
Valuing corporate securities 19
Handling customer accounts 27

Series 63 Uniform Securities Agent Laws

Individual states sometimes require this exam as a condition of registration as a registered representative or in conjunction with investment adviser registration.

The exam covers the Uniform Securities Act of 1956 (and amendments) and provides guidelines for state registration of securities and defines fraudulent sales practices.
50 Questions
1 Hour
No prerequisite
$60 test fee (Form U-10 or U-4)
Topics

Definitions of terms 10 Questions
Licensing requirements 8
Registration of securities 5
Fraudulent and prohibited activities 22
Regulatory oversight 5

Series 64 Uniform Real Estate Securities Examination

This exam was developed to provide the real estate syndication industry with a securities agent qualification exam devoted solely to matters related to real estate program offerings. The exam also provides the basis for state securities administrators to determine the level of applicants’ knowledge of real estate offerings before licensing or registering them as agents. This exam is not intended for those who have passed the #22 or #7 exams.
50 Questions
1 Hour
No prerequisite
$60 test fee (Form U-10 or U-4)
Topics

Real Estate Program Offerings 8 Questions
Types of Real Estate Programs 12
Taxation 16
NASAA Statement of Policy Regarding
Real Estate Programs 14

Series 65 Uniform registered Investment Adviser Examination

As modified on December 31, 1999 by NASAA, this exam is required by most states (42 as of 10/25/99) for individuals who wish to act as investment advisers. Some states require the principals of the RIA to score greater than a 70%. This exam is waived by some states if the applicant has the CFP (Certified financial Planner), the ChFC (Chartered Financial Consultant), PFS (Personal Financial Specialist), CFA (Chartered Financial Analyst), the CIC (Chartered Investment Counselor), or other designations or items as ruled by the (state) administrator.

130 Questions plus 10 pretest questions that do not count against you.
3 Hours
No prerequisite
$110 (Form U-10)

Economic Analysis 15% (20 questions)
Basic concepts, financial statements, quantitative methods,
Risks.
Investment Vehicles 20%(26 questions)
Cash equivalents, fixed income, equities, investment
Companies, derivatives, international investing annuities,
Real estate trusts and partnerships.
Investment Recommendations and Strategies 30%(39 questions)
Financial profile, portfolio strategies, taxation, retirement
Plans, trading, calculate performance.
Ethics and Legal Guidelines 35%(45 questions)
Federal and State securities laws, ethical practices.

Series 66 Uniform Combined Registered Investment Adviser – State Laws

As modified on December 31, 1999 by NASAA, the #66 consists of questions covering the Series #63 and a portion of the Series #65 that is not redundant to the Series #7 exam. Even though the test is essentially two areas, a passing score based on the total number of questions is all that is required.

100 Questions plus 10 pretest questions that do not count against you
2 ½ Hours
Prerequisite Series #7
$110 test fee (Form U-10)

Investment Analysis, Recommendations and Strategies 20% (20 questions)
Quantitative methods, investment performance, client’s
Financial profile, retirement plans, types of risk, and portfolio
Strategies.
Ethics and Legal Guidelines 80% (80 questions)
State securities laws, federal laws, ethics

Series 72 Government Securities Representative

The proposed rule allows individuals who have been registered as Government Securities Representatives for more than 2 years from the effective date of the rule to be grandfathered. Those who do not qualify for grandfathering will be required to pass the Series #72 of the Series #7.
100 Questions –
$60 test fee (Form U-4)
3 Hours
No prerequisites
Government Securities 25 questions
Mortgaged Backed Securities 25
Related Securities & Financial Instruments 9
Economic Activity, Government Policy &
Interest Rates 17
Legal Considerations 10
Customer Considerations 15

Series 91 FDIC Examiner Technical Evaluation

No data available