Study for the Series 6 Exam

  The Series 6 Exam covers SEC Rules including Regulation S-P on the privacy of consumer financial information and the safeguarding of customers' personal information. FINRA specifically lists Regulation S-P in its Series 6 Content Outline in Section 2.2. Recently the SEC has amended Regulation S-P "to  address the expanded use of technology and corresponding risks that have emerged since the Commission originally adopted Regulation S-P in 2000."  The amendments cover situations where computer hackers unlawfully view, copy or steal  a firm's customer accounts records . Brokerage and advisory firms, including mutual fund firms, are required to detail steps in writing to be taken when a brokerage firm suffers such a break-in. Firms must also report such events to the SEC as soon as possible, but no later than 30 days of occurrence. Furthermore, firms must notify customers whose accounts are, or reasonably likely to be, among those breached or stolen. Here's how the ...

  The Series 6 Exam tests candidates on privacy rules that registered reps must observe for maintaining the confidentiality of financial information and financial status of customers. How do we know this? FINRA publishes a   Content Outline   for the Series 6 Exam, and Section 2.2 of the Content Outline lists the Privacy Requirements and Regulation S-P as important for the Series 6 Exam. Bob Eder in his Series 6 guide,  Study for the Series 6 Exam , discusses privacy requirements in detail. Here is a sample of Bob Eder's discussion: Regulation S-P The SEC has adopted Regulation S-P to assure that broker/dealers and investment advisory firms, as well as other firms that collect sensitive financial information of customers, comply with the law on safeguarding the privacy of personal non-public financial information. The notice must be easy to understand, conspicuous, not camouflaged in small type or font. It must be sent to all persons with whom a financial firm initia...

FINRA publishes a Content Outline for the Series 6 Exam that lists the subject matter for test questions. Included are Privacy Regulations regarding financial information received from customers and clients. See Section 2.2 of FINRA's Content Outline. Thus a representative must not disclose details about a customer's account or financial position or history. This information is confidential and may not be disclosed, absent a court order. Candidates for the Series 6 license must prepare themselves to answer questions about Privacy Regulations, including when a customer may opt out from allowing a brokerage firm to share confidential customer information with related affiliates. Bob Eder covers Privacy Regulations in detail in his Study for the Series 6 Exam . Here is a sample of Bob Eder's treatment: "Safeguarding Privacy of Customers                                          ...

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                                                                        ...