Series 7/63 for an IB position?

Can someone explain to me why a series 7/63 would be needed for investment banking? I saw this job posting and it didn't seem legitimate because of it.

seeking to hire an investment banking financial analyst who will be graduating with an undergraduate Business degree in May/June 2009. provides an excellent opportunity for the analyst to gain an expansive breadth of hands-on experience across all aspects of various corporate finance and advisory transactions (including debt & equity capital raising, M&A, financial restructurings, etc.). The prospective candidate will work with senior bankers in analyzing transactions and preparing presentation materials to communicate our ideas and findings to clients/prospective clients, as well as to potential investors. Specific duties will include excel financial modeling, maintenance of industry comparables, valuation analyses, creating presentations and offering materials, and market research. Significant finance and accounting coursework and finance-related internships/experience are critical.

It is preferred that the candidate will be available to work on a paid part-time/internship basis (10-15 hours/week) beginning in January for training prior to potentially transitioning to the full-time position starting in July (following graduation). Upon commencement of the full-time position, the analyst will be required to pass the Series 7 and 63 FINRA licensing exams, which the firm will sponsor.

 

you technically dont. But I guess they might want you to have it just so you have some more credentials.

By the way, I guess we are from the same school since I saw the exact posting online. How did your interviews with banks go?

 
Best Response

Honestly, you get the 7 and 63/66 to be Registered with FINRA. Even though you are not taking orders and trading, I would assume its in order to interact with clients. That tends to be why people take the 63 (Blue Sky Laws) or the 66 (Combination of Blue Sky Laws and the Registered Investment Adviser [Series 65 - needed if you want to do discretionary management of funds or run your own advisory business + a whole slew of supervisory exams]). The 7 is a prerequisite exam to the 63/66, which is why you need to take that.

Search the forums, I know people here have spoken about this exam in the past.

 

if at any point, you may talk to investors, (marketing your bank's product or soliciting an investment in your client) you need those licenses.

at most big wall street firms, IB associates are required to have those or attain them. some boutiques require analysts to get them since they have smaller teams.

equity research associates and analysts have to get them as well. they speak with investors and publish investment advice.


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jackofalltrades:
a more cynical person might also argue that it also allows a bank to weed out a few of the incoming analyst class for cost reduction when they fail the exams.

..they give incoming analysts finance and accounting exams. you think they'd really shell out the extra $500 per analyst for them to fail?

the above posting is for a boutique.

The world has changed. And we must change with it.

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It depends on the compliance department of your bank (smaller banks are just trying to avoid headaches, its cheaper to require the 7 than fight the sec/finra im sure). ALSO, the FINRA and SEC low level drones are basically retarded. Requiring analysts to pass the 7 is just one more brick on the wall. (our bank requires the 7/63 for ibd)

I dont blame them for requiring it, Case: Our compliance had to walk the regulators through why we didn't restrict internal insider-trading on a Company's stock that we were engaged to do their future IPO...

 

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