The Series 87 exam is the regulatory half of FINRA’s two-part Research Analyst qualification, paired with the Series 86 analytical exam. It has 50 scored multiple-choice questions plus 5 unscored pilot questions, gives you 1 hour and 45 minutes, costs $195, and requires a score of 74% to pass.1FINRA. Series 86 and 87 – Research Analyst Exams The scored content splits into two areas: preparing research reports (36 questions) and disseminating and marketing them (14 questions).2FINRA. Series 86 and 87 Content Outline
Who Can Take the Series 87
FINRA Rule 1220(b)(6) sets the qualification path for Research Analyst registration. You need to pass the Securities Industry Essentials (SIE) exam and both Research Analyst exams (Series 86 and Series 87).3FINRA. FINRA Rule 1220 – Registration Categories The SIE can be taken before or alongside your Series 86/87 registration.4FINRA. Co-requisites for Qualification Exams
The Series 7 is not a prerequisite, despite a common assumption to the contrary. FINRA’s rule text names only the SIE and the Research Analyst exams. You also cannot enroll yourself; a FINRA member firm must sponsor you and file on your behalf.
You can take the Series 86 and 87 in either order, but both must be completed before your Research Analyst registration takes effect.
What’s on the Exam
The bulk of the exam — 36 of the 50 scored questions — deals with preparing research reports. Passing hinges on knowing FINRA Rule 2241 in detail.
Disclosures in Research Reports
Rule 2241 lists nine categories of disclosures that must appear when a firm publishes a research report. These include whether the analyst or a household member has a financial interest in the covered company, whether the firm managed a public offering for that company in the past 12 months, whether the firm received investment banking compensation from the company in the same period, whether the firm expects to seek investment banking business from the company in the next three months, and whether the firm was making a market in the company’s securities when the report was published.5FINRA. FINRA Rule 2241 – Research Analysts and Research Reports
The Research/Investment Banking Firewall
Analysts cannot participate in pitches for investment banking business or promise favorable ratings as an inducement for banking deals.6FINRA. Research Rules Frequently Asked Questions Investment banking personnel cannot review research reports before publication. A narrow exception lets sections of a draft go to the subject company for factual verification only, provided those sections omit the summary, rating, and price target, and a complete draft has already been given to legal or compliance.5FINRA. FINRA Rule 2241 – Research Analysts and Research Reports
Personal Trading Restrictions
Firms must have written policies restricting analyst accounts so that analysts and their household members cannot profit from advance knowledge of an upcoming report’s content or timing.5FINRA. FINRA Rule 2241 – Research Analysts and Research Reports The rule does not set a fixed blackout period; instead, recipients of the research must have a “reasonable opportunity to act” before the analyst trades.
Dissemination and Marketing
The remaining 14 questions test fair distribution. Research must reach all clients before any individual gets preferential access, and material nonpublic information cannot be selectively disclosed. The principle is simple: no one should trade on your conclusions before the broader client base sees them.
Registration Steps and Fees Before You Sit
Your sponsoring firm files Form U4 through the Central Registration Depository (CRD), covering your residential history for the past five years and continuous employment for the past ten, along with any disciplinary, criminal, or regulatory disclosures.7FINRA. Form U4 Uniform Application for Securities Industry Registration or Transfer Providing inaccurate information can result in disciplinary action or denial of registration.
You’ll also submit fingerprints as part of the background check. Electronic submission is $30 ($20 FINRA plus $10 FBI); paper is $40.8FINRA. Fingerprint Fees Electronic vendors may add their own collection fee. The check screens for events that trigger statutory disqualification, including felony convictions, certain securities-related misdemeanors within the past ten years, and SEC or SRO bars.
FINRA charges $125 for each initial Form U4 filing, separate from the $195 exam fee and any fingerprint costs.9FINRA. FINRA Rules – Section 4 Fees State registration fees may also apply depending on jurisdiction.
Scheduling, Test Day, and the Passing Score
Once your firm submits Form U4 with the exam enrollment, you have a 120-day window to take the test, starting the day after the enrollment request is submitted.10FINRA. Frequently Asked Questions About Qualifications in CRD Scheduling runs through Prometric. Book early in busy metros.
Rescheduling or canceling more than 10 business days out is free. Within 3 to 10 business days it costs $97.50, and within 2 business days or a no-show forfeits the full $195.11FINRA. Reschedule or Cancel Your Appointment FINRA has no hardship policy; a missed window means the fee is gone.
Bring one valid government-issued photo ID that also carries your signature — driver’s license, passport, or military ID. Photocopies are not accepted. The exam is computer-based, proctored, and closed to any outside materials or electronic devices.1FINRA. Series 86 and 87 – Research Analyst Exams
Your score appears on screen the moment you submit the final question. 74% is the pass mark, and a pass updates your CRD record toward completing Research Analyst registration.
If You Fail
The first and second failures each trigger a 30-day waiting period. From the third failure onward, the wait is 180 days between attempts.12FINRA. SIE Exam and Exam Restructuring Frequently Asked Questions Each retake is another $195, and your firm must re-enroll you for a new 120-day window. If your existing window expires while you’re waiting to retest, the enrollment does not roll over.
CFA and CMT Waivers From the Series 86
If you have passed Levels I and II of the CFA exam, you can request an exemption from the Series 86; the Series 87 still has to be passed.3FINRA. FINRA Rule 1220 – Registration Categories Analysts producing only technical research can use Levels I and II of the CMT exam the same way. Either route requires that you’ve worked continuously as a research analyst since passing the Level II exam, or that you apply for registration within two years of passing it.
Broader waivers exist for unusual circumstances, such as substantial industry experience, relevant graduate education, or prior regulatory employment. The sponsoring firm submits the request through FINRA Gateway; most grants are conditional, and applicants generally have 90 calendar days to satisfy the condition.13FINRA. Qualification Exam Waivers and Exemptions
Keeping Your Registration After You Pass
FINRA Rule 1240 requires every registered person, Research Analysts included, to complete the Regulatory Element of continuing education each year by December 31, delivered online through FinPro Gateway.14FINRA. Continuing Education
Miss the deadline and your registration goes inactive. You must stop any activity requiring registration — no soliciting business, accepting orders, or receiving transaction-based compensation while inactive.15FINRA. FINRA Rule 1240 – Continuing Education Residual commissions from earlier transactions may still come through unless your firm’s policy says otherwise. Two consecutive years inactive and FINRA terminates the registration entirely, meaning you would have to reapply and requalify from scratch.