Study for the Series 6 Exam

The SEC has rules regarding the requirement that registered reps maintain confidentiality about the financial positions of their customers. This is called Regulation S-P. FINRA's Content Outline for the Series 6 includes privacy regulations in Section 2.2. This means that a Series 6 candidate should expect to see questions on privacy requirements on the Series 6 exam. Bob Eder has detailed information about Regulation S-P in his Study for the Series 6 Exam . Here is a sample of Bob Eder's discussion on maintaining  privacy of financial information of  customers : "Regulation S-P                                                                        ...

Plan on taking the Series 6 exam? If so, make sure that you study and know the rules on customer screening and the customer identification program. FINRA's Content Outline requires knowledge of customer screening and the customer identification program in Section 2.2. Bob Eder presents a detailed treatment of customer screening in his Series 6 manual, Study for the Series 6 Exam , on pages 91-94. Here is a sample of Bob Eder's discussion: "Customer Identification Program (CIP) (2.2) As required by the USA Patriot Act, the SEC and the U.S. Treasury have adopted rules requiring that broker/dealers establish and operate a "customer identification program," or CIP. "Verification of Customer Information (2.2) A broker/dealer must verify the accuracy of the information given by the customer. This can be done in one of two ways: either by checking documents or by non-documentary means." Here is the  link to FINRA's Content Outline for the Series ...

If you are planning to sit for the Series 6 exam, be careful about requirements for opening accounts for customers. FINRA has rules regarding opening accounts, and FINRA includes this topic on the Series 6 exam. See FINRA's Series 6, Content Outline, specifically Section 2.1 and 2.2. Bob Eder discusses the requirements for opening accounts on page 87 of his Series 6 preparation manual, Study for the Series 6 Exam . Here is a sample from Bob Eder's treatment: Requirements for Opening New Accounts (2.2) Here are the basic items that FINRA requires on a new account form. 1.                     social security number or tax identification number 2.                     driver's license or passport number 3.                ...

The Series 6 exam asks questions about  account registration types, such as tenants-in-common, joint tenants with rights of survivorship, community property, sole proprietorships, partnerships, corporations, and unincorporated associations. How do I know that the Series 6 asks questions on various account registrations? Section 2.1 of FINRA's Content Outline lists the v arious types of account registrations as Series 6 required knowledge . Therefore make sure that you can describe and define each of the various account registrations. For example, what is the difference between tenants in common and joint tenants with rights of survivorship (JTWROS)? Joint tenancy is common among married couples. It means that if one of the partners or "tenants" die, his or her portion will automatically pass to the surviving partner. However, tenancy in common does not automatically pass a deceased tenant's share to the surviving tenant. The deceased partner's share simply goes in...

Never heard of municipal fund securities? Then be forewarned, the Series 6 exam covers these securities and expects you to know what they are, how they are defined, and what they include. Many  Series 6 study manuals skip them altogether. Make sure that your study manual discusses and explains them.  Bob Eder devotes six whole pages to Municipal Fund Securities on pages 214 through 220 in his  Study for the  Series 6 Exam ,  including practice questions testing the reader on his/her understanding and grasp of the text . Here is a Bob Eder paragraph on one type of municipal fund securities, local government investment pools, taken from Bob Eder's book: "Local Government Investment Pools (LGIP's) (3.2) Who creates local government investment pools? Answer: A state or local government creates these LGIP's as trusts for the benefit of participating local governments within the state. These LGIP's are considered to be municipal securities by the SEC and municipal fun...

FINRA publishes a Content Outline for the Series 6 exam, the exam that tests applicants on investment companies and variable contracts. In Section 1.2 of the series 6 Content Outline, FINRA lists one of its own rules as important to know for the exam. This rule deals with networking arrangements between members and financial institutions. But what exactly is "networking"? Bob Eder defines networking in his book, Study for the Series 6 Exam , in the following manner: "Networking with Financial Institutions (1.2) FINRA recognizes that when a broker/dealer and a bank agree to share office space, this could cause significant misunderstandings by people who utilize the services of the broker/dealer. Specifically, when a bank rents space within its branch office to a broker/dealer or one of its representatives, customer could think that the securities offered by the broker or dealer are FDIC guaranteed or covered by the FDIC. To prevent this misunderstanding, FINRA has adopt...