To work as a published equity research analyst in the United States, you need to pass two FINRA qualification exams: the Series 86 and the Series 87. Together these are the Research Analyst (RS) licensing requirements, and they sit on top of one corequisite, the Securities Industry Essentials (SIE) exam. You cannot take any of them without a FINRA member firm sponsoring you.
Who Has to Take the Series 86 and 87
FINRA Rule 2241 defines a research analyst as any person primarily responsible for preparing the substance of a research report on equity securities. A research report is any written communication analyzing equity securities of individual companies or industries that contains enough information for a reader to base an investment decision on it. If you produce that kind of work, or you appear publicly (television, conferences, financial media) to discuss your firm’s research on equities, you fall inside the registration requirement.1FINRA. FINRA Rule 2241 – Research Analysts and Research Reports
Note the scope: this is the equity research license. Fixed income and other product-specific research supervision has its own pathway, and the Series 86/87 is not the credential for buy-side analysts at firms that are not FINRA member broker-dealers.
Sponsorship and the SIE Corequisite
You cannot self-enroll for the Series 86 or 87. FINRA Rule 1220(b)(6) requires that you be associated with a FINRA member firm before you can sit for either exam.2FINRA. FINRA Rule 1220 – Registration Categories Your sponsoring broker-dealer files the paperwork, pays the exam fees, and runs the background check.
The only corequisite is the SIE, which covers foundational securities concepts (product types, market structure, regulators). The SIE itself does not require sponsorship, so many candidates take it before they land a job.3FINRA. Co-requisites for Qualification Exams The Series 7 is not a regulatory prerequisite for the Research Analyst registration, though many firms require it in practice because they want their analysts to hold broader securities knowledge.4FINRA. Series 86 and 87 – Research Analyst Exams
Your Research Analyst registration stays inactive until all three components (SIE, Series 86, Series 87) are complete. Until then you cannot publish research or make public appearances on your firm’s behalf.
Series 86: The Analytical Exam
The Series 86 is Part I of the Research Analyst qualification and is the longer, more technical of the two. It runs four hours and 30 minutes and contains 95 multiple-choice questions, of which 85 are scored and 10 are unscored pretest items. You will not know which is which.5FINRA. Series 86 and 87 Content Outline
The content covers three areas. Information gathering: pulling data from financial statements, economic reports, and industry sources and judging its reliability. Company and sector analysis: identifying the drivers that move an individual company and its industry. Valuation and forecasting: discounted cash flow models, comparable company analysis, and building projections from financial statements. Valuation is the heaviest section, and weak accounting or corporate finance fundamentals show up quickly.
The passing score is 73.4FINRA. Series 86 and 87 – Research Analyst Exams
Series 87: The Regulatory Exam
The Series 87, Part II, tests the rules governing research analysts. It has 55 multiple-choice questions (50 scored, 5 unscored) and a time limit of one hour and 45 minutes.5FINRA. Series 86 and 87 Content Outline Shorter than the Series 86, but dense.
Most of the content sits inside FINRA Rule 2241: the separation required between a firm’s research department and its investment banking operations, disclosure rules for analyst compensation, and restrictions on how reports are prepared and distributed.1FINRA. FINRA Rule 2241 – Research Analysts and Research Reports Expect questions on public appearances (what an analyst can and cannot say about a covered company), on required disclosures inside a report, and on distribution rules.
The passing score is 74.4FINRA. Series 86 and 87 – Research Analyst Exams
Waivers for the Series 86
FINRA recognizes two professional designations as substitutes for the Series 86 analytical exam:
- Candidates who have passed both Level I and Level II of the Chartered Financial Analyst (CFA) exam can request an exemption from the Series 86.6FINRA. Qualification Exam Waivers and Exemptions
- Candidates who have passed both Level I and Level II of the Chartered Market Technician (CMT) exam can request the same exemption, but only if they will function as research analysts producing exclusively technical research.6FINRA. Qualification Exam Waivers and Exemptions
Both waivers cover Part I only. No waiver exists for the Series 87. Every research analyst must pass the regulatory exam regardless of designations or educational background.4FINRA. Series 86 and 87 – Research Analyst Exams And the waiver is not automatic. Your firm must file the request through FINRA; you cannot invoke it on your own.
The Registration Process, Fees, and Scheduling
The process starts when your firm’s compliance department files a Form U4 through FINRA’s Central Registration Depository (CRD) system.7FINRA. Form U4 Once the filing is processed, you have 120 days to sit for the exam. Miss that window and your firm must refile and pay again.8FINRA. Schedule an Exam
Both exams are administered at Prometric testing centers. Bring valid government-issued identification. Scores appear on screen immediately, and FINRA records them in CRD within a few business days.
What Happens If You Fail
Fail either exam and you must wait 30 days before your second attempt. Same 30-day wait after a second failure. After a third failure, the waiting period jumps to 180 days, and that longer wait applies to every attempt after that. Plan your preparation before the first sitting rather than after the first setback.
What You Must Do After You Pass
Sign a Regulation AC Certification on Every Report
Beyond FINRA’s rules, the SEC’s Regulation AC requires every research report distributed to U.S. investors to include a signed analyst certification. The analyst must attest that all views in the report genuinely reflect their personal opinions about the securities discussed, and must either confirm that no part of their compensation was tied to the specific recommendations or disclose the source, amount, and purpose of any such compensation.9eCFR. Regulation AC – Analyst Certification Noncompliance creates personal legal exposure for the analyst, not just the firm.
Complete Continuing Education Each Year
FINRA Rule 1240 requires every registered person to complete annual continuing education.10FINRA. FINRA Rule 1240 – Continuing Education The Regulatory Element is an online module assigned by FINRA and delivered through the FinPro platform; you must complete it by December 31 of the year it is due. Your first Regulatory Element is due by December 31 of the calendar year following the year you registered. Miss the deadline and your registration goes inactive, which means you cannot publish research or make public appearances.11FINRA. Continuing Education (CE) Your firm also runs its own Firm Element training program each year, tailored to its business, and you are responsible for completing whatever it assigns.
Watch the Two-Year Lapse Clock If You Leave
When you separate from a FINRA member firm, the firm files a Form U5 recording your termination. From the termination date on that form, you have two years to associate with another FINRA member firm. Join within the window and your registration transfers without new exams. Wait longer than two years and you lose your qualifications and must retake the Series 86 and 87 from scratch.12FINRA. FINRA Qualification and Registration Requirements Frequently Asked Questions (FAQ) Analysts who take a break, move to the buy side, or shift into a non-registered role often discover this rule only after it has cost them.
If You Want to Supervise Research Later
The Series 86/87 qualifies you to produce research. Supervising a research department requires additional licensing: a Research Principal must hold both the Series 24 (General Securities Principal) and the Series 16 (Supervisory Analyst).13FINRA. Series 24 – General Securities Principal Exam The Series 16 tests whether a principal can review and approve research on debt and equity securities, market commentary, technical analysis, and rating changes. It has two parts: Part 1 covers regulations (50 questions, 90 minutes, passing score 72) and Part 2 covers securities valuation (50 questions, two hours, passing score 74). The Series 16 has no corequisite exam, though it still requires firm sponsorship.14FINRA. Series 16 – Supervisory Analyst Exam If your goal is to run a research desk rather than write reports for one, those are the next licenses in line.