A FINRA-administered introductory-level exam that assesses a candidate's basic understanding of the securities industry, including product knowledge, market structure, regulatory agencies, and prohibited practices. Unlike most FINRA representative-level exams, the SIE has no sponsorship requirement, meaning anyone age 18 or older can sit for it.
Who it's for
Aspiring securities industry professionals — including college students and career changers exploring the industry before committing to a firm — as well as current employees of FINRA member firms preparing for a full registration. The SIE alone does not qualify a candidate to conduct securities business; it must be paired with a top-off exam (such as the Series 6 or Series 7) and sponsorship by a FINRA member firm before registration is complete.
What's covered
- Knowledge of Capital Markets — market structure, regulatory bodies, economic factors, and market participants
- Understanding Products and Their Risks — equity and debt securities, packaged products, options, and the risks associated with each
- Understanding Trading, Customer Accounts, and Prohibited Activities — order types, account types, margin, and prohibited industry practices such as insider trading and churning
- Overview of the Regulatory Framework — the securities acts, self-regulatory organizations, and investor protections that govern the industry
What to expect
The SIE consists of 75 scored multiple-choice questions (plus unscored pretest questions) administered over 1 hour 45 minutes, with a passing score of 70%. It is computer-based and can be taken at Prometric test centers or via online proctoring. There is no prerequisite experience or firm sponsorship required to register and sit for the exam.
How to prepare
Because the SIE tests broad conceptual knowledge rather than firm-specific procedures, building a strong foundation in terminology — the difference between primary and secondary markets, how bond prices relate to interest rates, what distinguishes systematic from unsystematic risk — pays off across every section rather than just one. The regulatory and prohibited-activities content rewards careful reading, since many questions hinge on precise definitions (churning versus front running versus insider trading) rather than calculation.
Certification details
- Administering body: Financial Industry Regulatory Authority (FINRA).
- Eligibility: Open to anyone age 18 or older; no firm sponsorship required to sit for the SIE alone.
- Exam format: 75 scored multiple-choice questions in 1 hour 45 minutes, computer-based.
- Passing score: 70%.
- Validity: A passing SIE result is valid for four years, during which it can be paired with a qualifying top-off exam (e.g., Series 6, Series 7, Series 79) and firm sponsorship to complete registration.