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Finance Fundamentals: Certifications and Designations

  • Writer: Claire Carpenter
    Claire Carpenter
  • 3 days ago
  • 2 min read

 

As future professionals in the world of finance, it is important to understand the designations and certifications that are available. With the Financial Industry Regulatory Authority currently listing over 250 exams, it can be difficult to distinguish which ones will actually be useful, catalyzing your career in the right direction. Almost all occupations related to wealth management require becoming a registered securities professional. A person must legally obtain a license to buy and sell stocks or bonds on behalf of clients and to provide investment advice, which can be achieved through a series of exams. 



The Securities Industry Essentials (SIE) Exam is a great first step to take in pursuit of a professional career in any area of financial advising. As an entry level exam, the SIE is open to anyone 18 or older, and association with a firm is not required to take the exam. Given the slightness of these stipulations, taking the SIE early is a good way to set yourself apart from other candidates while you’re searching for a job. However, this alone doesn’t legally enable a person to engage in securities business by himself. Therefore passing the Securities Industry Essentials Exam must be completed in concurrence with another exam.



The next step to gaining the legal FINRA status to buy and sell stocks, bonds, mutual funds, etc is taking the Series 7 Exam, also known as the General Securities Representative Exam. This exam elaborates upon the preliminary knowledge tested in the SIE, highlighting extensive knowledge of securities and related concepts. To take the Series 7, a person must be associated with and sponsored by a FINRA member firm. Most finance-industry professionals take this while they are first entering the field, typically around the time they complete a bachelor’s degree. 



After passing the SIE and the Series 7, a person has effectively obtained the FINRA General Securities Representative registration, opening the door for further specialization in the world of designations. Registered general securities representatives have a plethora of certifications to choose from when deciding which direction they’d like to take their career. Exams like the Certified Financial Planner (CFP) and the Chartered Financial Analyst (CFA) are the most common professional certifications pursued for financial advisors. It is recommended that new college graduates take the CFP or similar exams within two exam cycles from when they graduate. 



For every area of personal and corporate finance, there are corresponding designations available to distinguish a person as a practicing professional, enhancing their credibility and establishing them as an accredited professional. Understanding these exams and certifications will help you comprehend the necessary steps to take as you progress towards your professional career!



 

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