Are you preparing for the FINRA Series 79 exam? If so, you are probably also seeking a sponsor, as required by the Financial Industry Regulatory Authority (FINRA). In the following article, we’ll explore the roots of the Series 79 exam, the requirements of the exam, and the seven secrets you’ll collect to get and keep a sponsorship program.
Series 79: An Overview of the Exam
There are a number of exams by FINRA needed to validate the movement of professionals through various roles within the financial industry. FINRA was established to create a fair financial market for all parties and to ensure each representative within the market is fully trained and capable of the expertise required.
For the Series 79 exam, an applicant who is seeking securities licensing must have a series 79 sponsorship in place in order to sit for the exam. This involves the applicant’s search for a willing series 79 sponsorship and further training in the investment banking areas of expertise. The four main categories of investment banking are highlighted within the exam:
- The collection of data, analysis of that data and evaluation of the results.
- An accomplished understanding of mergers and acquisitions, tender offerings and the required registration of securities.
- Depth of knowledge of the general securities industry regulations.
- Task knowledge in underwriting, financing transactions, registration of securities and offerings.
Series 79: An Overview of the Applicant
In addition to obtaining a sponsoring firm, the applicant must provide salient details on the application. The sponsoring firm completes the application, adds payment, and submits it to FINRA. Some of the following items to be included: the Form U4 application, personal demographic details, professional employment history and related statements.
In addition to these basic applicant requirements, the applicant will need to hold a background of an entry-level registered professional with an aptitude to become an entry-level investments banker. The applicant must be fully advised and prepared for the exam itself by the sponsoring firm.
Series 79: An Overview of the Sponsoring Firm
The sponsoring firm of a Series 79 applicant has a serious obligation to fulfill. A team of firm members will oversee the training of the applicant, which will require their time and attention, and several exam answers are included. Areas of knowledge required in the exam include: an understanding of financial markets and knowledge of FINRA, knowledge of regulations, knowledge of M&A, market insights, buyside and sellside dealings, etc.
In addition to this list, the sponsoring firm has the responsibility under FINRA to ensure the applicant has fulfilled the investment banker licensing training, and secured the appropriate securities licensing and compliance with federal securities laws as a result of the sponsorship.
Series 79: How to Secure (and Keep) a Series 79 Sponsorship
Most of the information gleaned from general search engines suggest you, as the applicant, approach potential sponsors you already know or “know of.” This strategy may be successful; however, there are multiple applicants seeking sponsorship and only a limited number of sponsors available. How can you leverage your approach and apply your search to the best possible outcome? Here are the secrets to getting and keeping a Series 79 sponsorship:
1. Be honest and transparent with the sponsoring firms you approach. If you alter or eliminate information from a sponsor, you will probably be discharged from the process. If you have concerns about your personal or professional history, this is the time to bring those questions to the forefront.
2. Approach firms that sponsor the highest number of exam applicants, search FINRA (finra.org) for prominent sponsors, and comb through data to determine which firms are fully invested in sponsoring.
3. Combine your professional expertise and knowledge with a personal sense of style and creativity. Do not approach with a “basic resume or curriculum vitae” and a bland cover letter. Use marketing strategies to sell yourself and your personal brand:
4. Clearly outline the benefits you’ll bring to the sponsoring firm, including your ability to build relationships with clients, improve processes, and any other skills you bring to the table.
5. if you are considering launching a new business under interim sponsorship, make that effort extremely clear. Your launch could be highly advantageous for the sponsoring firm.
6. Follow up every sponsor request sent with regular phone calls indicating your interest. Persistence pays off.
7. Ensure that all submissions include correct spelling, punctuation, and sentence structure. There is no faster way to the trash can than sending a poorly constructed resume or letter.
The secrets to getting and keeping a Series 79 sponsorship are fairly simple: approach sponsors who have a strong history of sponsorship, engage fully, and remain persistent in your efforts. You’ll get there by employing these 7 secrets in a winning strategy!