Series 7, 63, 86, 87, and CFA Level I/II: Which Order to Take?

I apologize in advance for the length of this post, but I'm trying to plan for the next twelve months and need a little help. First, some background:

I am currently scheduled to begin work as a full-time associate in June. The firm that I am with has no set timeline for completing your licensing exams and the Series 86 and 87 are not immediately required. As I would also like to begin working my way through CFA, I am wondering what the best order to take these exams would be. Since I will miss the June CFA exam date, I am thinking that I will start with the Series 7 and 63, but am unsure where I should go from there. Tentatively, my plan is as follows:

June - Begin working, apply for Series 7 and begin studying (may only have time for one week of studying)
July - Take Series 7, begin studying for Series 63
August - Take Series 63, begin studying for...???
September - November - ???
December - Take CFA Level I
January - May of Next Year - ???
June of Next Year - Take CFA Level II

Therefore, my question is this: Could I squeeze the Series 86 and/or 87 into that August - November time frame, or should I put them off until next year? If I put them off, should I put them off until after CFA Level II (in which case I wouldn't need to take the 86), or should I try to squeeze them in before CFA Level II just in case I don't pass? Also, would it be possible to study for the Series 86 and CFA Level I simultaneously, instead of studying for one and then the other? I've heard that the exams are somewhat similar, but am unsure how feasible this would be.

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Best Response

Let me clear up a few things from above and then provide I'll my $0.02.

Optimistic Consultant is correct in that you cannot be named on a research report until you have your 86 and 87.

There is some overlap among the 86 and 87 and the CFA exams but I don't think it will apply to you. There is an exemption available for the 86 if you have passed CFA level 2. The exemption would allow you to skip taking the 86. Given that you are just now starting the CFA I don't think it would make sense for you to wait until you pass level 2 to then apply for the exemption for the 86. Even if you pass level 1 and level 2 the first time and take level 1 this December, you would have to wait until the end of July of 2017 to apply for the Series 86 exemption. Just take the 86 sooner rather than later so that you can put your name on the reports. Also, the above post about not needing the 86 and 87 if you have your CFA is incorrect. Even if you are a charterholder (i.e. passed all 3 exams, have 4 years of relevant work experience, applied for the charter, and received the charter) FINRA requires "Research Analysts" (which includes associates) to have the 86 and 87.

If it were me doing it all over again (I have done the 7, 66, 86, 87, and CFA level 1 and 2) I would try to stick to a dedicated schedule and get them done as soon as possible. That being said, I think you might be in a bit of a tough spot. I passed the Series exams the first time (this is not hard to do) but even then it spanned over about 4 months. You could do it on a tighter schedule but that would be an even bigger pain. They are not particularly difficult but they do require time and effort. (They're boring frankly.) The CFA exams are no joke, even level 1. If I were you, I don't think I would try to do all four Series exams and then go for level 1 in December. That sounds like burnout and probably not enough time to prep for level 1. (I also wouldn't suggest studying for the 86 and level 1 at the same time). Not to mention, then you have to have enough energy to make it through level 2 right after.

Given the details above I think you have two choices (just my opinion though):

First, do all four Series exams from June until ~November-December. Give yourself a deserved break over the holidays then start studying in February for level 1 in June of 2016. The advantage of that approach is that you can put your name on research reports sooner and you have a break in between exams so you don't get burned out. The potential disadvantage is if your group gives you some sort of bonus or raise if you pass the CFA exams (I don't know how widespread this is though).

Second, do the 7 and 63 (or 66) from June-July and then start studying for the December level 1 exam in early August. That gives you 4 months to study for level 1. Then go right into studying for June level 2 (assuming you pass level 1). Start studying for the 86 and 87 and if you pass level 2 then apply for the 86 exemption. If you fail level 2 then you'll have already been studying and are ready to go on the 86 followed by the 87. The advantage here is that you potentially accelerate your CFA program time. The disadvantage is that you can't put your name on research for quite some time.

At the end of the day it depends on what you're comfortable with and what your firm emphasizes. Personally, I like option 1. One last note, I would suggest Securities Training Corporation (STC) material for studying for the Series exams. That's what I used but there are other options out there if you prefer.

"Successful investing is anticipating the anticipation of others". - John Maynard Keynes
 

In agreement with SvenS. I took all of these exams as well, though I did CFA L1 in June, then worked to get through all the Series exams by September or so. I'd focus on getting the Series exams done first so that your name is on the reports - the CFA is a longer process, so you have the luxury of taking some time, and you want to be VERY prepared for each level. I'd go with Option 1 that SvenS laid out, and would echo that STC was the best study material.

 

I guess another thing to take into consideration (other than what has been mentioned), is what are your future plans. Do you plan on staying in sell side research, do you plan on staying at the same firm? If you plan on leaving after a year or two, maybe going the CFA route is the better option, that way by July 2017 you have your CFA level 2, the 7 and 63 (which looks more attractive to buy side then someone who just has series licenses). If you plan on staying at your firm or moving to another ER firm, getting your 7,63,86, and 87 and then going after CFA would be the better approach.

 

Take all of your license exams and then focus on your CFA. You are completely useless to your senior analyst, if you do not have your 7&63. You can continue to work without your 86&87, but your name will not be mentioned in the report. Most firms give you 90 days to complete all four exams. In addition, you were hired to be an associate not a professional test taker. You should focus on understanding your industry, coverage list and the incremental put/takes of each thesis.

If your career goal is to switch over to the buyside, your main focus should be understanding your companies well enough in order to speak with clients. This will allow you to build your network and brand with the buyside. If a client has an empty seat and respects your opinion you are likely to be poached. Also as a FYI, most buysiders could care less about a CFA unless you're at a top tier long only. My colleagues and I never mentioned a candidate having their CFA as plus when debating to add a potential analyst to the fund.

 

Most start the CFA after college in my experience, however, I think that the CFA Institute has made a bigger push on campuses leading to more seniors sitting for the Level I exam. They say it usually takes 4 tries to pass all 3 levels. If you pass all 3 levels you also need 4 years of investment related work experience.

 

Iste voluptatum id earum enim porro nemo. Repudiandae aut qui accusantium minima.

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