FINRA Series 7 vs. Series 82 vs. Series 79: Which License Is Right for You?

This article is not legal advice.

For professionals working in mergers and acquisitions, private placements, and capital raising, FINRA licensing is highly recommended, if not required — but it is often misunderstood.

Many advisors ask:

• Which FINRA exam do I actually need?

• Do I need the Series 7, Series 82, or Series 79?

• What about the SIE — what is that?

• What about the states and the Series 63?

• When is broker-dealer sponsorship required?

This distinction between different licenses is critical, as using the wrong license can create regulatory exposure even when the underlying transaction is otherwise compliant. As an independent broker-dealer, we here at Britehorn Securities help our Registered Representatives choose the right exams for them, as well as sponsor them to take those exams if needed.

This guide breaks down the Series 7, Series 82, and Series 79, explains the SIE requirement, clarifies state licensing and the Series 63, outlines license expiration rules, and explains how broker-dealer sponsorship works for M&A advisors and private placement professionals.

Why FINRA Licensing Matters for M&A and Capital Raising

Any professional who:

• Receives transaction-based compensation

• Participates in securities transactions

• Raises capital through private placements

• Advises on M&A transactions involving securities

  
  

...generally must be registered with FINRA through a FINRA broker-dealer. While there are exceptions for M&A business brokers, we recommend reading our article on Why M&A Brokers Should Consider FINRA Registration.

To become registered, securities professionals must pass qualifying exams administered by FINRA to demonstrate their competence in the particular securities activities in which they will work. An individual must pass the exams prior to engaging in those areas of the business. A list of all the FINRA exams can be found on their website, along with details and pricing.

The licenses we most often get asked about — and one of which all the Registered Representatives working with us as their broker-dealer hold — are the Series 7, Series 82, and Series 79.

Series 7: General Securities Representative

The Series 7 is FINRA’s most comprehensive representative-level license. The exam for it is 3 hours and 45 minutes long, consists of 125 questions, and costs $300 to take. For those considering a varied career in finance, this is always our recommendation — but for those only practicing M&A, it may feel like a lot, depending on your test-taking skills. We've also noticed that being one of FINRA's most established and long-standing exams, the Series 7 has one of the best prep courses by Kaplan.

What it covers:

• Equity and debt securities

• Corporate securities

• Investment company products

• Options

• Trading and customer accounts

👉 FINRA Series 7 overview

👉 Investopedia explanation of the Series 7

The important item to note is that the Series 7 is required when a professional will be working with public securities, not just private transactions.

While many M&A advisors and private placement professionals can operate under the Series 79 or Series 82, the Series 7 becomes necessary in a couple of capital markets scenarios involving publicly traded securities — namely PIPE transactions and hedge fund capital raising.

Public Securities and PIPE Transactions

One of the most common examples is a PIPE transaction, which stands for Private Investment in Public Equity. A PIPE involves:

• A publicly traded company

• Raising capital through a private placement

• Issuing securities that are registered or convertible into registered public shares

Because PIPEs involve public company securities, FINRA generally requires representatives involved in these transactions to hold a Series 7 license, rather than relying solely on the Series 79 or Series 82.

Hedge Fund Capital Raising and Public Securities Exposure

The Series 7 may also be required for capital raising activities involving certain hedge funds, particularly when:

• The fund trades publicly listed securities

• The offering involves complex public market instruments

While many hedge fund raises are conducted under Regulation D, a Series 7 registration might be required when the activity resembles public securities distribution or sales functions, rather than purely advisory or transactional roles.

Series 82: Private Securities Offerings Representative

The Series 82 is specifically designed for private placements under Regulation D. The exam is 1 hour and 30 minutes, consists of 50 questions, and costs $60 to take.

What it covers:

• Private securities offerings

• Regulation D exemptions

• Capital raising mechanics

• Investor suitability and disclosures

👉 FINRA Series 82 overview

👉 Investopedia on private placements

The Series 82 is actually much broader and more useful than most broker-dealers or investment banking professionals give it credit for. We are actually big fans of the Series 82 here at Britehorn Securities, as our stance is that it allows our Registered Representative to engage in both M&A advisory and private capital raising activities. We simply supervise all transactions as private placement transactions. We do not require our M&A professionals to hold a Series 79 if they have a Series 82 — but we do require the Series 82 if what starts out as an acquisition opportunity turns into a capital raise — making the Series 82 more expansive and flexible.

While different broker-dealers have taken different stances in their acceptance and recommendation of the Series 82, ours is as such (and has stood through several FINRA reviews): FINRA defines the Series 82 as qualifying a person to "effect sales of private securities offerings" — and an M&A transaction is essentially the sale of equity interests of a private security. As long as an M&A transaction does not involve the sale of public securities (for which you'd need a Series 7), and your activities fall within "effecting the sale," FINRA accepts the Series 82 without issue.

In our experience, the biggest down side of the Series 82 is that Kaplan does not offer a study guide for it, and the Pass Perfect (formerly Solomon) Series 82 prep and The Securities Institute of America Series 82 prep are just not as good.

Series 79: Investment Banking Representative

The Series 79 is considered the primary FINRA license for M&A advisors and investment bankers. The exam is 2 hours and 30 minutes long, contains 75 questions, and costs $300 to take.

What it covers:

• Mergers and acquisitions

• Business combinations

• Fairness opinions

• Valuation concepts

• Capital structure

• Private placements tied to transactions

👉 FINRA Series 79 overview

👉 Investopedia explanation of the Series 79

While we accept the Series 79 here at Britehorn Securities for those engaged strictly in M&A activities, we stop short of calling it the most appropriate license for investment bankers (despite its name). Again, different broker-dealers have taken different stances on this, but we highly recommend the Series 82 as the more appropriate exam, allowing for flexibility if your M&A opportunities evolve into growth capital raises or minority recapitalizations.

In addition, if you also carefully read the FAQs section of FINRA's guide on the Series 79, it clearly states:

"The Investment Banking Representative registration category is meant to include investment bankers who, as part of their job activities, advise on or facilitate the marketing of an offering. This would include activities such as preparing a marketing plan, advising on a marketing plan prepared by a sales team, or developing and/or contributing information for marketing materials. However, it would not include persons who actively market the offering and interact with investors or potential investors, such as a person who is engaging in road show activities. Such a person would also need to be registered as a General Securities Representative (SIE + Series 7 exam) or Private Securities Offerings Representative (SIE + Series 82 exam)."

The SIE Exam: Required for New Entrants

For those new to the FINRA licensing world, you will now have to take the SIE exam before you take any of the 3 "top-off" exams mentions above. Implemented in 2018, the Securities Industry Essentials (SIE) Exam is an introductory general exam that is required for individuals who were not previously FINRA-licensed.

Before the SIE, exams like the Series 7 were 250 questions long, often requiring two separate three-hour sessions. The SIE allowed FINRA to shorten those exams, making the "top-off" exams instead.

Key points about the SIE:

• Covers basic securities concepts and regulation

• Required before the "top-off" Series 7, 79, or 82

• Does not require broker-dealer sponsorship

• Valid for four years

👉 FINRA SIE overview

When we say this exam does not require broker-dealer sponsorship — that means that unlike with the Series 7, Series 79, or Series 82 — you do not need to be registered with a broker-dealer to take it. You can simply create a FinPro account and sign up for the exam via ProMetric. In fact, we here at Britehorn recommend that you do it this way for several reasons.

State Licensing and the Series 63

Almost all registered representatives must also pass the Series 63, which is administered by NASAA, not FINRA.

Series 63 basics:

• Covers state securities laws

• Allows you to be instantly get registered in all U.S. states and territories (assuming you have no disclosures)

• Required in most U.S. states

• Does not require broker-dealer sponsorship

👉 NASAA Series 63 overview

Here at Britehorn Securities, we require our Registered Representative to have a Series 63 license. We may allow some leeway with timing for those reps that only operate in a state that does not require the Series 63 (Colorado, Florida, Louisiana, Maryland, District of Columbia) — but because most M&A and private placement professionals operate across state lines, the Series 63 is effectively mandatory for most advisors.

Like with the SIE, when we say this exam does not require broker-dealer sponsorship — that means that unlike with the Series 7, Series 79, or Series 82 — you do not need to be registered with a broker-dealer to take it. You can simply create a FinPro account and sign up for the exam via ProMetric. In fact, we here at Britehorn recommend that you do it this way for several reasons.

What if you have a valid Series 66?

If you hold a currently valid, unexpired Series 66 (which is a combination of the Series 63 and Series 65 Investment Adviser exam) — FINRA should be able to give you credit for a Series 63, which we will accept.

Licensing Expiration and the MQP/ EVEP Programs

FINRA licenses such as the Series 7, Series 82, and Series 79 expire after 2 years if you leave a broker-dealer (and the SIE after 4 years). That means you will have to re-take those exams if you have not been registered for more than that amount of time.

FINRA has also recently introduced The Maintaining Qualifications Program (MQP), which allows certain individuals to maintain their license for up to 5 years without retesting. You can enroll for and manage the MQP in your FinPro account, requiring you to continue to take your annual continuing education (CE) and pay $100/year.

Important limitations:

• Applies only to FINRA licenses (not the state-level Series 63, which is explained below)

• Applies only if you've been registered with a broker-dealer for at least 1 year prior to "retiring"

• Requires you to enroll within 2 years of retiring (before you become "CE-inactive")

• Is not available for those with statutory disqualifications

The states are a bit behind here, with the NASAA’s Exam Validity Extension Program (EVEP) aiming to be able to do the same with the Series 63 — but not all states having opted in. You can see which states have adopted the EVEP here (the first column with the "AG" category is what applies to "agents of a broker-dealer"). Until a majority of states have adopted the EVEP, most broker-dealers will not accept it, unless reps are operating in a very limited geographic area.

Choosing the Right Licensing Path

This distinction between different licenses is critical, as using the wrong license can create regulatory exposure even when the underlying transaction is otherwise compliant. As an independent broker-dealer, we here at Britehorn Securities help our Registered Representatives choose the right exams for them, as well as provide sponsorship for those exams. Have questions or want to get our advice? Contact us anytime!