by admin on November 2, 2009
Investment Banking Representative Exam Goes Live
Today marks the first day that current Series 7 licensed representatives of BDs who engage in “investment banking activities” can opt in to the Series 79 license. Current Series 7’s will need to talk with their compliance department who will be able to complete a Form U4 update for the rep. According to a FINRA representative I talked with last week, the opt in process will be very easy – essentially the compliance person for the BD will go into the CRD system, check the Series 79 box for the appropriate BD reps and then submit the revised U4 to FINRA.
Reps who engage in investment banking activities should make sure that they have opted in before May 3, 2010 or they will be required to take the exam which is 5 hours long (175 multiple choice questions).
Series 79 Articles
- Regulatory Notice 09-41 – this article reprint’s FINRA’s notice to members. Notice includes: background and discussion on exam, discussion of the opt in period, information on the training program exception, information on requirement for principals, outline of content, registration procedures, effective date and FAQs.
- Series 79 Content Outline – FINRA’s content outline for the new exam. Provides an overview of the major categories and sub-categories which will be tested.
- Series 79 Questions and Answers – in this article we address some of the questions which have been posed to us regarding the new investment banking exam.
Other related hedge fund law articles include:
Bart Mallon, Esq. of Mallon P.C. runs Hedge Fund Law Blog and can be reached directly at 415-868-5345.
by vbala on July 13, 2009
SEC to Shed Light on the New Series 79 Exam
Pursuant to a proposal set forth by FINRA in February of this year, it is anticipated that the Series 79 will be introduced as a simplified alternative exam for investment bankers. Prior to the introduction of this new exam, all registered representatives were required by NASD Rule 1032 to take the Series 7 exam. The proposal modified this Rule to condense the exam for those individuals whose activities are limited to investment banking. The primary reason behind the FINRA proposal for a new abridged exam was that the Series 7 exam covers a broad array of functions that do not pertain to the day-to-day activities of an investment banker.
On July 13, 2009 we contacted FINRA to determine what information, if any, has been released on the new Series 79 exam. According to FINRA, the SEC has approved the proposal set forth by FINRA as of April of this year, but SEC approval on the content of the exam and related fees is still pending. Thus, there is limited information available to prospective exam takers regarding the proposed content of the exam, the timeline for required registration, the release of related study materials and/or course offerings, and related exam fees. Once the SEC issues its approval, a formal press release will be issued to the public regarding the structure of the exam as well as an expected date as to when the modified NASD Rule 1032(i) will be enforced, thereby establishing the Series 79 as the new license requirement for investment bankers.
All information regarding the Series 79 Exam will be available on this site for prospective exam takers once it is formally approved by the SEC.
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If you have any questions regarding the Series 79 Exam or would like to start a hedge fund, please contact us.
