Finra Exec: Agency Is Studying Series 7 Scores, Correlations

FINRA may be looking to disclose something else about brokers on their U4 forms, series 7 scores. The series 7 is the uniform exam to sell securities at a member firm of FINRA and it is required for a myriad of positions in the financial services industry. At the Financial Advisor Summit, FINRA’s Susan Axelrod confirmed that the SRO is looking at correlations between series 7 scores and other factors, most likely marks on licenses. It is unclear how this will be beneficial to the database since it is a pass-fail test where one just has to attain a score of 70 to pass. Therefore, many who take the exam only seek to achieve a score of 70 or marginally higher. Also, the test has changed over the past years, so it is tough to glean much information from old scores. The Wall Street Journal did a similar study back in April with the series 63 exam and found that those brokers who had failed the 63 were more likely to have disclosures on their U4 forms.

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