A FINRA license is a registration issued through the Financial Industry Regulatory Authority that lets you sell securities or give investment advice while working for a broker-dealer firm. To get one, a FINRA member firm has to sponsor you, you have to pass the Securities Industry Essentials (SIE) exam plus a specialized qualification exam such as the Series 7 or Series 6, and the firm has to file a Form U4 on your behalf along with fingerprints for a federal background check.
FINRA is a private-sector, self-regulatory organization authorized by Congress and supervised by the Securities and Exchange Commission. It handles the day-to-day regulation of broker-dealer firms and the people who work for them, including who is allowed to sell investment products.1Cornell Law Institute. Financial Industry Regulatory Authority (FINRA)
License or Registration?
People call it a license, but FINRA itself calls it a registration. The distinction matters because a FINRA registration is a federal-level credential authorizing you to work as an “associated person” of a member firm, and by itself it does not satisfy state requirements. Most states also require you to pass a state law exam, usually the Series 63 or the Series 66, and register with the state’s securities department. You generally need both the FINRA registration and state registration to do business in a given state.
What you’re actually allowed to do depends on which qualification exam you pass. Someone who passes the Series 6 can sell mutual funds and variable annuities but cannot trade individual stocks. Someone who passes the Series 7 can sell nearly every type of security product. FINRA tracks all of this through the Central Registration Depository, a database that records your qualifications, employment history, and any disciplinary events.2Investor.gov. Central Registration Depository (CRD)
You Need a Firm to Sponsor You
You cannot register with FINRA on your own. A FINRA member firm has to sponsor you, which means the firm vouches for your character, verifies your background, and takes on responsibility for supervising your securities activities.3FINRA. Standards for Admission The whole regulatory model depends on firms being accountable for the people operating under their umbrella.4FINRA. FINRA Rule 1210 – Registration Requirements
Once sponsored, the firm files a Form U4 for you and submits your fingerprints for an FBI criminal background check. If FINRA doesn’t receive the fingerprint information within 30 days of the U4 filing, it can place you in inactive status until the issue is resolved.
The Exams You Have to Pass
FINRA’s exam structure has two layers. First you take the SIE, which covers foundational industry knowledge. Then you take a “top-off” exam that qualifies you for a specific line of securities work.
The SIE
The SIE is open to anyone 18 or older, and you do not need firm sponsorship to sit for it. That means you can demonstrate baseline knowledge before you’ve even landed a job. The exam has 75 questions, runs one hour and 45 minutes, and requires a score of 70 to pass.5FINRA.org. Securities Industry Essentials (SIE) Exam A passing SIE result is valid for four years. Miss that window without obtaining an approved registration, and you have to retake it.6FINRA.org. Exam Credit and Exam Validity
Top-Off Exams
Unlike the SIE, every top-off exam requires active firm sponsorship. The most common options:
- Series 7, the General Securities Representative exam, is the broadest qualification. It lets you sell stocks, bonds, options, municipal fund securities, direct participation programs, and investment company products. It has 125 scored questions, takes three hours and 45 minutes, and requires a score of 72.7FINRA.org. Series 7 – General Securities Representative Exam
- Series 6 is narrower, limited to mutual funds (closed-end funds on the initial offering only), variable annuities, variable life insurance, unit investment trusts, and municipal fund securities like 529 plans. It has 50 scored questions and requires a score of 70.8FINRA. Series 6 – Investment Company and Variable Contracts Products Representative Exam
- Series 79 covers advising on or facilitating debt and equity offerings, private placements, and mergers and acquisitions.9FINRA.org. Series 79 – Investment Banking Representative Exam
If You Fail
FINRA imposes waiting periods between attempts. After your first or second failure on any qualification exam, you have to wait 30 days to try again. After a third failure, the wait jumps to 180 days.10FINRA.org. SIE Exam and Exam Restructuring Frequently Asked Questions Results come back immediately at the testing center.
What It Costs in 2026
Most of these fees are paid by your sponsoring firm. The exception is the SIE if you take it before you’re hired, in which case the fee is yours. FINRA’s 2026 fee schedule includes:11FINRA.org. FINRA Fee Adjustment Schedule
- SIE exam: $100
- Series 7 exam: $395
- Series 6 exam: $100
- Form U4 initial filing: $125
- Disclosure review, if your U4 includes reportable events: $155
- Fingerprint processing: $20 electronic, $30 paper card or through another SRO
State registration fees are separate and generally range from under $50 to around $190 per state. Working across multiple states, those add up quickly.
The Form U4 and Your Background
Form U4, the Uniform Application for Securities Industry Registration or Transfer, is the formal application that puts you into FINRA’s system. Your firm files it electronically through the CRD; you do not submit it yourself.12FINRA. Form U4
The form asks for at least five years of residential history and ten years of employment history, with no gaps longer than three months in either. The most consequential parts are the disclosure questions on criminal charges, regulatory actions, customer complaints, civil judgments, liens, bankruptcies, and compromises with creditors within the past ten years. Every “yes” triggers a separate disclosure reporting page with details.
Accuracy is not optional. Misstatements or omissions on a U4 can lead to fines, suspensions, or a permanent bar from the industry. Once filed, your U4 information becomes part of your permanent CRD record and is largely visible to the public through FINRA’s BrokerCheck tool.
Statutory Disqualification
Some events in your history can block you from FINRA registration entirely. Under Section 3(a)(39) of the Securities Exchange Act, you are subject to “statutory disqualification” if you have been convicted of any felony within the past ten years, convicted of certain securities-related misdemeanors, barred or suspended by the SEC or another regulator, or subject to a court injunction related to securities law violations.13FINRA.org. General Information on Statutory Disqualification and FINRA’s Eligibility Proceedings Disqualification isn’t always permanent; a firm can apply to associate with a disqualified person, but approval is rigorous and never guaranteed. If anything in your background might trigger it, you want to know before the U4 is filed, not after.
Keeping the Registration Active
Passing the exams gets you registered. Staying registered requires continuing education on two tracks.
The Regulatory Element is due annually by December 31 for every registered person, delivered through FINRA’s online platform and covering regulatory developments, compliance, and ethics for your registration category.14FINRA.org. Continuing Education (CE) Miss the deadline and your registration can go inactive until you complete it.
The Firm Element is your firm’s own annual training program, tailored to the products, services, and compliance issues specific to its business. The firm evaluates its training needs at least annually and maintains a written plan.15FINRA. FINRA Rule 1240 – Continuing Education
Your U4 disclosure obligations also continue for as long as you’re registered. If you’re charged with a crime, become subject to a regulatory action, file for bankruptcy, or experience any other reportable event, your firm has to amend your U4 to reflect it.
Leaving a Firm
When you separate from a FINRA member firm for any reason, the firm must file a Form U5 within 30 days of your departure and give you a copy.16FINRA.org. Form U5 The U5 records when you left and why, and it becomes part of your permanent CRD record.17FINRA. How to Terminate Your Registration With FINRA
After termination you have two years to join another firm and transfer your registration without retaking exams. Miss that window and your qualifications lapse; you’d have to pass the exams again or qualify for waivers.6FINRA.org. Exam Credit and Exam Validity FINRA also runs an optional Maintaining Qualifications Program that lets formerly registered individuals preserve qualifications beyond two years by completing annual CE content, but you have to opt in and keep it current.18FINRA.org. Regulatory Notice 21-41
One point worth flagging: FINRA retains jurisdiction over you for at least two years after your registration terminates. It can still investigate and discipline you for misconduct that occurred while you were registered, even after you’ve moved on.