The financial services industry is rife with opportunities for professionals seeking to expand their knowledge and qualifications. One such qualification that has gained prominence in recent years is the Series 86 license. But what exactly is the Series 86 license, and how can you obtain it? This article delves into the nitty-gritty of this coveted credential, exploring its definition, characteristics, evaluation criteria, and the step-by-step process of acquisition.

Understanding the Series 86 License

The Series 86 license, also known as the Uniform Securities Agent State Law Examination, is a professional designation offered by the North American Securities Administrators Association (NASAA). It is designed for securities agents and investment adviser representatives who wish to conduct securities business in states that have adopted the Uniform Securities Act. The license attests to the holder's knowledge and understanding of state securities laws and regulations, enabling them to comply with legal requirements when offering or selling securities.

Characteristics of the Series 86 License

The Series 86 license is unique in several ways. Firstly, it is state-specific, meaning that it applies to securities transactions conducted within the borders of the adopting states. Secondly, it focuses on the practical application of securities laws and regulations, emphasizing the real-world scenarios that securities professionals are likely to encounter. Finally, the license is continuously updated to reflect changes in state securities laws, ensuring that holders remain up-to-date with the latest legal developments.

Evaluation Criteria for the Series 86 License

To obtain the Series 86 license, candidates must demonstrate a thorough understanding of state securities laws and regulations. This is assessed through a rigorous examination that covers topics such as registration requirements, disclosure obligations, prohibited practices, and enforcement mechanisms. The examination is typically conducted in a multiple-choice format, and candidates must achieve a passing score to be eligible for licensure.

Step-by-Step Process for Obtaining the Series 86 License

Determine Eligibility: The first step is to confirm your eligibility for the Series 86 license. Typically, you must be employed or associated with a firm that is registered with the state securities regulator in the state where you intend to conduct securities business.

Register for the Exam: Once you have confirmed your eligibility, you can register for the Series 86 exam through the NASAA or a designated testing provider. Be sure to check the exam schedule and registration deadlines to ensure that you have sufficient time to prepare.

Prepare for the Exam: The Series 86 exam is no walk in the park, so it's crucial to allocate adequate time for preparation. Consider enrolling in a review course or studying with a study guide to familiarize yourself with the exam content and format. Practice tests and mock exams can also help you identify areas that need improvement.

Take the Exam: On the day of the exam, arrive early and bring all required identification and exam materials. Follow the instructions carefully and manage your time effectively to ensure that you complete the exam within the allotted time frame.

Await Results: After completing the exam, you will need to wait for the results to be released. This process can take several weeks, so be patient and check the NASAA website or contact the testing provider for updates.

Obtain Licensure: If you have successfully passed the exam, congratulations! You are now eligible to apply for the Series 86 license. Complete the necessary application forms and submit them to the state securities regulator along with any required supporting documentation. Once your application is approved, you will be issued the Series 86 license, authorizing you to conduct securities business in the adopting states.

Conclusion

The Series 86 license is a valuable credential for securities professionals seeking to expand their practice and comply with state securities laws. By following the step-by-step process outlined in this article, you can obtain this coveted license and enhance your career prospects in the financial services industry. Remember, the key to success lies in thorough preparation and a steadfast commitment to staying up-to-date with the latest legal developments.

FAQs

What happens if I fail the Series 86 exam?

If you fail the Series 86 exam, don't despair. You can retake the exam after a specified waiting period (typically 30 days). Use the time between attempts to identify your weaknesses and focus your preparation efforts accordingly. Seek additional resources or consider enrolling in a review course to improve your chances of success on the next attempt.

Do I need to renew my Series 86 license?

Yes, the Series 86 license typically requires periodic renewal to maintain its validity. Check with your state securities regulator for specific renewal requirements, which may include completing continuing education courses or submitting updated personal information. Staying current with your license renewal ensures that you remain compliant with state securities laws and regulations.