New 5 hour exam for Investment Bankers
Beginning in November, investment bankers will be required to pass a new FINRA test
Limited Representative - Investment Banking (Series 79) - (Available November 2, 2009) 175 multiple choice questions; 5 hours testing time. This examination qualifies an individual to advise on or facilitate debt or equity offerings through a private placement or public offering or to advise or facilitate mergers or acquisitions, tender offers, financial restructurings, asset sales, divestitures or other corporate reorganizations or business combination transactions.[/quote]
Nice. Next up, GPA average for your analyst stint.
Courtesy of Clusterstock:
[quote]
On the bright side...it is, supposedly, going to be required of bankers in lieu of the Series 7 and there will be an exemption period for people with the 7 to avoid the new requirement. It could have been worse - bankers could be required to take the 7 and the 79 - although at some point FINRA could easily come to the decision that since each exam (7 and 79) is so valuable and so full of incredibly essential testing material that we should be required to take both exams....and the 63.
IBanker www.BankonBanking.com [email protected] Articles, News, Advice and More Break Into Investment Banking
That's a lot of time for 175 multiple choice questions.
Maybe it's not just an exam, it's an opportunity to ensure the knowledge is etched into our memories. We shouldn't approach this exam not as an exam, but rather, an opportunity to expand our knowledge and vastly improve our ability to perform as bankers - I for one am saddened, yes deeply saddened by the fact that, as it stands now, I won't have to take this test since, regrettably, I am already licensed (note: sarcasm - that is all).
IBanker www.BankonBanking.com [email protected] Articles, News, Advice and More Break Into Investment Banking
you have got to be kidding me
Seriously, cry me a river. If those yahoo's answering phones in Charles Schawb's call centers can pass the 63 & 7 it really should be no stretch for us. I can't see this test being any harder. And I can say we now because I got a FT offer from my SA stint ha.
"Cowards die a thousand deaths, but the brave only one," Bill Shakespeare
I'm aware of at least one BB requiring its analysts/associates to do the 7 as well. Perhaps as a means of heading off this new exam?
Goldman and Barclays definitely make bankers take the 7.
Morgan and JPMorgan don't.
BS MS require Capital Market Banker to take the 7
I know that....I'm referring more to the analysts in coverage and your more typical product groups, not ECM and DCM, which I have always viewed as more of a hybrid position.
JPM does require you to take 7 and 63 as an IB coverage associate.
is this for incoming analysts too? or is it for higher level bankers. if you do a summer analyst stint and get a FT will they make you take it before you start?
You take Series exams during or several weeks after training
How much would this exam cost? How much money will flow from the banks back to FINRA/NASD for this? Entry level IBD analysts were generally exempt from Series 7/63 requirements.
Required in lieu of the 7/63 seem like a good idea for me. Although there is some material that my be relevant, there is a lot that is really more tailored to a retail broker.
1) Good Idea with the S79. Like most materials on the FINRA exams, it will be forgotten in 2 weeks after completing the exam. I doubt that banks will forgo the requirement for the S7/S63 combo though, unless FINRA allows for an S79/S63, but that won't work on principal.
2) The reason why banks like using an S7/S63-S66 combo is that it gets you registered both on the federal level (the S7) and the state level (S63 and S66). The federal level is straight registered. The state level is all about the Blue Sky Laws, which are meant as fraud protection for the public. So, for anyone involved in Capital Markets groups, Equity and Fixed Income Syndicate, R144A/QIB Security Sales, you need the S63 to sell them.
3) Hey Westfald, don't knock those Schwab guys. Not everyone passes those exams on the first try, and people don't always keep their jobs because of it. A guy I work with that graduated from Harvard was fired about 8 months into working at my shop because he failed the S7 three times. A friend of mine at another shop, in his analyst class, there were 4 people that failed the S7 and were dropped from the program immediately. One guy went to Cornell, another went to Yale the third went to UMich, and the last guy went to Rutgers. Just think of it like that. What happens if you fail the S79 and don't get another shot at it? Think about that before you knock other people.
4) WallStreetWarrior, this is for the new full time guys. For people that have already passed the 7/63-66, they will allow you to waive the exam by having your U-4 amended.
First off, my two roommates both are in the broker training program at Schwab. They definitely don't have anywhere near the academic prowess that the above do & both passed with no more than two try's. Don't get me wrong by any means, those tests are definitely not easy, but I just kind of have a hard time believing that anyone that could excel at those schools couldn't pass that test. I'm not disputing what you said is true, its just tuff to swallow knowing some people that have passed it. That being said Schwab offers study time for the exam & tutoring programs during work hours. Plus they max out at 40 hrs a week no matter what, so they have plenty of extra time to study. I don't know if the same arrangements are made at your shop, but that was the only impression I've had of the exams. I could see how it would be really tough to pass if you were working 70+ hr weeks and such. And my roommates easily fit the description of a "yahoo" btw.
"Cowards die a thousand deaths, but the brave only one," Bill Shakespeare
Wasn't the S7 around five hours as well? no big deal, right?
S7 was 6 hours.
I have heard the S79 is supposed to be harder than the S7.
Anyone know of good study guide for Series 79? Did anyone take it by any chance?
wtf I didn't know we have to pass institutional exams after getting hired as a FT analyst. So every IBD analyst has to take these exams while working full time?!
Yea - I wasn't aware of that either.
Only those who shouldn't be bankers should be afraid of a test. Study for it like you do anything else and pass it. Then move on with your life and collect your bonus. Done.
Next?
These exams are incredibly easy.
I studied very little and ate some bad food for breakfast before I took one of the exams and nearly shat in my pants while I was taking it, and still got >95% (I think 60% or 70% is the requirement).
Are you the exception or was this the case with basically everyone in your analyst class? How soon do you take the test after starting the program and how in the world do you ever have time to study for it while working 100 hours a week?
n/a
Does your company know you're score, or is it just a pass or fail ?
There is a sheet that prints out indicating your score. Anything above a 70 really is a waste. I took a nap in my car during the break when I took the S7. Absolutely not a hard exam.
Wow how the hell did Harvard/Yale/Cornell/Mich kids fail this exam if it's so easy
I knew a bunch of kids that failed it and the common thread was the fact that they weren't finance majors. Series 7 is tricky if you don't have any background in it. I had to get licensed for insurance before I could take the 7 and I had a hard time with that test only because a lot of the material was entirely new.
Interesting. Maybe I'll try to load up on a little more finance before I graduate.
Could a company possibly fire you for getting a "low" passing score?
n/a
Good thing - not bad.
The S79 is actually easier than the 7 and contains more relevant corp fin areas. The 7 was broad and more irrelevant to corp fin.
These gov reg exams are pieces of cakes for people already going to IB.
So, we just have to take the S79, not the 7, correct? How would you guys say it stacks against a typical corporate finance midterm/final exam at school?
Just study the material, like I said it isn't incredibly hard. I used STC for my study guide. You only need a 70 so you should be fine. I took mine before my senior year so my formal finance education was rudimentary at best. Good luck!
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