Series 7 & 63 when is it needed?

[Wallstyouth]

When is a series 7 and 63 really needed? It seems as if most quants dont really need it because there not really trading? Yet I see most of the trade support guys and portfolio managers with this certification for obvious reason....

Is this really a grey area in the industry? Should one only get a series 7,63 etc... only when they are trading on the behalf of external clients? When exactly does one need to get these ceritifications?

 

[cw202]

When you move to a front office role and interact with external clients. Not required in IT.

 

[Wallstyouth]

When you move to a front office role and interact with external clients. Not required in IT.

So If your a quant on a prop trading desk writing all the models that buy and sell on behalf of the firm who in turn is investing high networth clients capital into this fund a series 7/63 isnt needed?

 

[cw202]

prop trading desk = front office


Generally, you need the series 7 when you interact with external clients or conduct transactions on behalf of clients. It is a regulation requirement, not a CV embellishment. The fact that you are asking means you don't need the series 7 license for your job. Your group will sponsor your series 7 when they require you to have one. If you need further clarification, please conduct research through Google.

 

[alain]

So If your a quant on a prop trading desk writing all the models that buy and sell on behalf of the firm who in turn is investing high networth clients capital into this fund a series 7/63 isnt needed?

If you need it, your company will let you know. You need a sponsor in order to get them.

For example, I have never seen a client in my firm but I must have the licenses regardless.

 

[Andy Nguyen]

There doesn't seem to be a clear list of who is required to take the exam. Banks seem to overdo this more than hedge funds. They seem to require everyone in a group to have it regardless of their individual roles.
As mentioned, this is just a business requirement, not a designation like CFA. Just like a firefighter is required to pass CPR exam and no firefighter boats that he passed CPR
Company will sponsor and pay for your exam, regardless if you ever use it. Series 63 only needed in some states. Series 7 will do for the most part.

Can anyone can recommend some useful guides, books for series 7 ?

 

[Christian]

I think the firm will provide a useful guide to the Series 7. During a previous internship, I was supposed to be qualified and was given a guide with all of the important parts highlighted.

Of course, due to complications with the company's internship department, none of us received sponsorship :-k.

 

[QuantNeeds]

There doesn't seem to be a clear list of who is required to take the exam. Banks seem to overdo this more than hedge funds. They seem to require everyone in a group to have it regardless of their individual roles.
As mentioned, this is just a business requirement, not a designation like CFA. Just like a firefighter is required to pass CPR exam and no firefighter boats that he passed CPR
Company will sponsor and pay for your exam, regardless if you ever use it. Series 63 only needed in some states. Series 7 will do for the most part.

Can anyone can recommend some useful guides, books for series 7 ?

Andy,
I believe the CFA can substitute for the Series 7 and 63 but I think it's more expensive. Not sure what the series cost. If someone where interested in the CFA should they begin before or after a MFE or Ph.D.? I believe after because if its required you may get sponsored. Regardless its pretty neat to stay on your toes

 

[alain]

I believe the CFA can substitute for the Series 7 and 63 but I think it’s more expensive. Not sure what the series cost. If someone where interested in the CFA should they begin before or after a MFE or Ph.D.? I believe after because if its required you may get sponsored. Regardless its pretty neat to stay on your toes

That's a nice believe but it is incorrect.

Series 7 and 63 are licenses with the SEC. If you don't have them you are not allow to handle clients money (Series 7) among other things. The CFA is just a title, not a license. The CFA just says that you are a Chartered Financial Analyst, like the FRM and the PRMIA (?) for risk.

 

[Andy Nguyen]

Andy,
I believe the CFA can substitute for the Series 7 and 63 but I think it's more expensive. Not sure what the series cost. If someone where interested in the CFA should they begin before or after a MFE or Ph.D.? I believe after because if its required you may get sponsored. Regardless its pretty neat to stay on your toes

Series 7 is a one time, 6 hours exam.
CFA is 3 level exam. You obtain the CFA designation after you pass level 3. It usually takes 2 years at the earliest to pass since each level is offered once or twice a year, I believe.

CFA costs way more than Series 7. If you get sponsored to take the tests, the firm will pay.

Series 7 is easier to pass. I have a friend who studied in 2 days and pass in first try. He is a structurer who is familiar with SEC laws, regulation so it's easier for him.

When to study for the exam ? NOW.

You can take CFA Level 1,2 if you want to pay. When you get a job, your firm will sponsor you for Series 7 or CFA.

I don't know what you will use the exams for but if you like to take it, go for it.

 

[QuantNeeds]

That's interesting - I heard that comment from a teacher. I'm glad I found this blog, information backed with proof.