Study for the Series 6 Exam

Taking the Series 6 Exam? Have you studied the various types of accounts so that you can explain the similarities and differences? FINRA publishes a Content Outline for the Series 6 Exam, and Section 2.1 mentions testing knowledge of Types of Accounts ("e.g., prime brokerage, advisory, or fee based"). Thus FINRA is telling the Series 6 candidate that questions on this subject could appear on the Series 6 Exam. Bob Eder devotes several pages to the various Types of Accounts in his Study for the Series 6 Exam . Here is a sample of Bob Eder's treatment: Note on Clearing Brokers As far as introducing brokers and clearing brokers, the clearing broker handles the back office for the introducing broker, saving the introducing broker from having to staff and fund its own back office. In effect, the clearing broker is the main office, doing all the trade executions, record-keeping, sending out confirmations and monthly statements. The introducing broker is analogous to the branc

Taking the Series 6 Exam? Be careful that you study FINRA's Rule 2330 governing the ethics and propriety of recommending to a client that he/she exchange one deferred variable annuity for a new one. Take a look at the actual wording of FINRA's Rule 2330: "(1) No member or person associated with a member shall recommend to any customer the purchase or exchange of a deferred variable annuity unless such member or person associated with a member has a reasonable basis to believe (A) that the transaction is suitable in accordance with  Rule 2111  and, in particular, that there is a reasonable basis to believe that (i) the customer has been informed, in general terms, of various features of deferred variable annuities, such as the potential surrender period and surrender charge; potential tax penalty if customers sell or redeem deferred variable annuities before reaching the age of 59½; mortality and expense fees; investment advisory fees; potential charges for and features of