Series 6 Syllabus — Blueprint & Learning Objectives
FINRA Series 6 syllabus mapped to the official job functions with clear learning objectives and quick links to targeted practice.
This syllabus is based on FINRA’s official Series 6 Content Outline (4 major job functions). Use it as a checklist: cover every objective, then drill questions until you can identify the safest suitable, disclosed, documented answer fast.
Differentiate retail communications, institutional communications and correspondence, and identify high-level approval and record-retention expectations.
Apply FINRA Rule 2210 principles to recognize communications that are misleading, promissory or not fair and balanced.
Identify supervision and disclosure considerations for seminars, lectures and other group forums.
Recognize product-specific communication requirements for investment company products and variable contracts, including the need to present risks and fees clearly.
Identify special communication requirements for variable annuities and variable life insurance under FINRA Rule 2211.
Recognize when mutual fund rankings or ratings may be used and identify high-level disclosure expectations under FINRA Rules 2212 and 2213.
Describe generic vs product-specific advertising concepts at a high level and why some materials are treated differently under SEC rules.
Explain, at a high level, why deferred variable annuity sales are subject to heightened supervision and documentation expectations (e.g., FINRA Rule 2330).
Prospectuses, Offerings & Solicitation Basics
Differentiate preliminary vs final prospectuses and identify the purpose of prospectus delivery in registered offerings.
Describe the high-level steps and participants in bringing a new issue to market (e.g., due diligence, registration statement, underwriting, selling group, blue sky).
Identify official statements and preliminary official statements for municipal securities and explain their role in disclosure.
Explain, at a high level, what Regulation D is intended to do and why offering exemptions exist.
Define the intrastate offering exemption concept (e.g., Section 3(a)(11) and Rule 147) at a high level.
Recognize the purpose of prospectus delivery rules for broker-dealers and why misleading communications can create liability.
Describe networking arrangements between members and financial institutions at a high level and why disclosures and supervision are required (FINRA Rule 3160).
Recognize that some firms are subject to special supervision controls such as recorded communications (FINRA Rule 3170) and explain the purpose at a high level.
F2 — Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives (16%)
Differentiate cash, margin, options, advisory/fee-based and prime brokerage accounts at a high level, and identify common restrictions and disclosure themes.
Differentiate common registration types (individual, joint, community property, sole proprietorship, partnership, unincorporated association) and explain how registration affects authority and ownership.
Identify core requirements for opening a customer account and why firms collect specific information and agreements.
Explain retirement and other tax-advantaged accounts at a high level, including common plan types and key suitability considerations.
Differentiate transfers and rollovers at a high level and identify common tax and timing risks in rollover scenarios.
Recognize how wealth events (e.g., inheritance) can change customer objectives, risk tolerance and liquidity needs.
Describe why account registration changes and internal transfers require documentation and supervisory approval (FINRA Rule 4515).
CIP/KYC, Privacy & Customer Documentation
Apply customer identification program (CIP) basics: required identifying information, verification methods and recordkeeping.
Explain the purpose of Know Your Customer obligations (FINRA Rule 2090) and how KYC supports supervision and suitability.
Recognize common customer screening considerations (e.g., foreign residency/citizenship, corporate insiders, associated persons of broker-dealers or SROs) and why they matter.
Explain Regulation S-P privacy requirements at a high level (initial disclosures, opt-out notices, safeguarding and sharing limitations).
Identify common account authorization documents (POA, trust documents, corporate resolutions) and what they permit.
Differentiate trading authority from discretionary authority and identify the heightened controls around discretionary accounts (FINRA Rule 3260).
Identify suspicious-activity red flags and describe the expectation to escalate to supervisors or compliance for review.
Use investment objectives (preservation, income, growth, speculation) to identify mismatches between customer goals and product risk.
Differentiate reasonable-basis, customer-specific and quantitative suitability obligations (FINRA Rule 2111) and identify what each requires conceptually.
Recognize that recommendations can include strategies and “hold” recommendations and understand why they must still be suitable.
Apply a high-level Reg BI mindset: recommendations should be in the retail customer’s best interest considering costs, risks and reasonable alternatives.
Explain the purpose of Form CRS at a high level and recognize when delivery is required in the relationship lifecycle.
Identify risks and disclosure expectations when using investment analysis tools (FINRA Rule 2214) and why supervision matters.
Explain why tax status and account type affect product selection, including differences between taxable fund distributions and tax-deferred variable products.
Identify scenarios where missing customer information or red flags should lead to delaying, restricting or refusing activity pending review.
Supervision & Account Approvals
Identify common supervisory approvals required to open accounts and to add features such as margin, options or discretionary authority.
Explain the purpose of FINRA supervision and supervisory control systems (FINRA Rules 3110 and 3120) and how they affect rep workflows.
Describe, at a high level, firm controls for physical receipt, delivery and safeguarding of checks, cash equivalents and securities.
Recognize the documentation and authorization expectations for third-party check requests and similar negotiable-instrument activity (FINRA Rule 4514).
Identify circumstances when firms may restrict activity, place heightened supervision, or close an account (e.g., suspected exploitation or suspicious activity).
Apply documentation and “reasonable effort” expectations when customers decline to provide key profile information.
F3 — Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records (50%)
Explain diversification and concentration risk and how diversification primarily reduces nonsystematic risk.
Describe correlation at a high level and how combining assets can change portfolio volatility.
Define alpha and beta at a high level and interpret what a higher beta implies about market sensitivity.
Explain the basic idea of CAPM and the relationship between expected return and systematic risk (conceptual).
Identify the primary financial statements (income statement, balance sheet, cash flow statement) and the purpose of each.
Explain why footnotes and risk disclosures are important when evaluating investments.
Differentiate FIFO and LIFO inventory methods and describe their impact on reported results in inflationary environments (conceptual).
Describe depreciation as an accounting concept and why depreciation methods affect reported earnings but not cash flow directly (conceptual).
Explain the rationale for rebalancing and how it supports risk control over time.
Recognize how tax considerations (distributions, capital gains, deferral) can influence product selection and timing.
Underlying Securities & Core Tax Concepts
Differentiate common and preferred stock at a high level and identify common risks relevant to equity holdings in funds.
Explain bond basics (coupon, maturity, yield) and the inverse relationship between interest rates and bond prices.
Differentiate Treasuries, agency securities, municipal securities and corporate bonds at a high level, focusing on credit and tax characteristics.
Describe common money market instruments (commercial paper, brokered CDs, banker’s acceptances) and identify key risks (credit and liquidity).
Explain options fundamentals (calls/puts, long/short) and the high-level purpose of options in hedging or income strategies.
Explain the conduit/pipeline concept for mutual funds and why funds distribute income and realized capital gains to shareholders.
Differentiate qualified and non-qualified dividends conceptually and identify why holding period can matter.
Recognize short-term vs long-term capital gains classification and the role of holding period (conceptual).
Apply wash sale logic at a high level and identify when a loss can be disallowed due to repurchasing substantially identical securities.
Explain netting of capital gains and losses conceptually, including separate short-term and long-term buckets.
Differentiate taxable mutual fund distributions from tax-deferred variable product growth and explain why this affects suitability.
Recognize packaged products as a category and identify common suitability drivers: liquidity, fees, complexity and time horizon.
Investment Companies, ETFs and UITs — Structure & Pricing
Differentiate open-end funds, closed-end funds, ETFs and UITs, including how each is issued, priced and traded.
Explain net asset value (NAV) and identify the main drivers of NAV changes (portfolio value, expenses, distributions).
Explain forward pricing and how mutual fund orders are priced at the next computed NAV.
Calculate public offering price (POP) and front-end sales charge given NAV and a stated load percentage.
Differentiate no-load, front-end load and back-end load (CDSC) structures and identify the primary investor tradeoffs.
Describe 12b-1 fees at a high level and explain why share class selection affects long-run cost.
Differentiate retail vs institutional money market funds at a high level and identify the typical purpose of each.
Identify common mutual fund objectives (value, growth, income, balanced, international, sector, life cycle/target date) and link them to risk profiles.
Explain exchange privileges within a fund family and identify suitability/disclosure considerations when switching between funds.
Describe how closed-end funds trade at a premium or discount to NAV and how that differs from open-end fund transactions.
Explain ETFs at a high level, including intraday trading, the creation/redemption mechanism concept and why ETFs can be more tax efficient than mutual funds.
Describe interval funds at a high level and explain why repurchase features create liquidity limits.
Mutual Fund Sales Practices, Transactions & Share Classes
Apply breakpoint concepts to determine reduced sales charges for larger purchases and explain right of accumulation (ROA) and letters of intent (LOIs) at a high level.
Calculate sales charge dollars and the sales charge percentage when given NAV and POP values.
Explain dollar-cost averaging (DCA) conceptually and why it can lower average cost per share when prices fluctuate.
Identify when DCA is unsuitable (e.g., short time horizon, insufficient funds to complete the plan) and why suitability must consider the full plan.
Recognize prohibited mutual fund trading practices such as late trading and certain market timing patterns, and explain why they can harm shareholders.
Explain mutual fund redemptions, including redemption at NAV (less any applicable CDSC) and common payout mechanisms.
Differentiate systematic withdrawal plans and explain why withdrawals can include return of capital depending on performance and timing.
Explain reinvestment of dividends and capital gains distributions and its effect on cost basis over time.
Describe conversion and exchange privileges and identify typical restrictions, fees or eligibility requirements.
Explain contingent deferred sales charges (CDSCs) and how declining schedules affect liquidity and share class selection.
Differentiate common mutual fund share classes conceptually (load vs level-load structures) and connect share class choice to holding period and cost.
Describe tender offers and repurchase features at a high level and identify why they matter to liquidity expectations.
Match fund types to customer objectives and risk constraints (e.g., money market vs bond vs equity funds).
Explain that mutual fund distributions are taxable in taxable accounts even if reinvested, and describe how this affects after-tax returns.
Variable Annuities & Variable Life — Features, Valuation & Taxation
Differentiate variable annuities and variable life insurance at a high level, focusing on insurance features, risks and intended use.
Explain the purpose of the separate account and how subaccount performance drives contract value.
Describe accumulation units and annuity units conceptually and how unit values affect contract value and payouts.
Explain surrender charges and surrender periods and evaluate how liquidity constraints affect suitability.
Identify common variable annuity fees (M&E, administrative, underlying fund expenses, rider fees) and explain why total cost matters.
Describe guaranteed minimum death benefits and common living benefit riders at a high level and recognize tradeoffs between guarantees and fees.
Differentiate annuitization payout options (life only, period certain, joint & survivor) and explain the longevity vs payment-size tradeoff.
Explain assumed interest rate (AIR) conceptually and how payouts can rise or fall based on performance relative to AIR.
Differentiate immediate vs deferred annuities and identify when each is commonly used (income now vs income later).
Explain tax deferral in variable annuities at a high level and why earnings are generally taxed as ordinary income upon withdrawal.
Recognize early-withdrawal tax penalties at a high level and why age and account type matter in withdrawal planning.
Describe “earnings-first” taxation intuition for non-qualified annuity withdrawals at a high level (fact pattern driven).
Explain the purpose of a 1035 exchange and identify suitability risks (new surrender charges, new fees, loss of benefits).
Identify red flags for inappropriate variable annuity exchanges and why replacing a contract without clear benefit can be problematic.
Explain why variable annuity recommendations are often subject to heightened principal review and documentation expectations (e.g., FINRA Rule 2330).
Recognize the importance of prospectus delivery and the free-look concept in the variable product sales process (high level).
Describe variable life insurance features at a high level (premium flexibility, cash value, death benefit variability) and identify key risks (lapse risk, market risk).
Apply variable product suitability factors: time horizon, tax status, liquidity needs, risk tolerance, costs and the customer’s understanding of guarantees and limitations.
Municipal Fund Securities — 529 Plans, ABLE Accounts and LGIPs
Define municipal fund securities and distinguish them from traditional municipal bonds at a high level.
Explain the purpose and basic mechanics of 529 college savings plans, including contribution, investment and distribution concepts.
Differentiate 529 college savings plans from prepaid tuition plans at a high level (fact pattern driven).
Describe account owner vs beneficiary roles and explain how control and beneficiary changes can affect planning.
Differentiate qualified vs nonqualified 529 withdrawals at a high level and identify common tax and penalty consequences of unqualified withdrawals.
Explain rollover concepts for 529 plans at a high level and recognize that rollovers and beneficiary changes can have limits and tax implications.
Describe ABLE account purpose at a high level and identify the general idea of eligibility and qualified expenses (conceptual).
Explain local government investment pools (LGIPs) at a high level and why they are used for cash management.
Evaluate municipal fund security suitability considerations including horizon, fees, investment risk, and potential tax benefits.
Recognize disclosure expectations and where investors typically access ongoing disclosures for municipal-related products (e.g., EMMA, plan disclosure documents).
Required Disclosures, Costs & Risk/Return Communication
Identify required product disclosures at a high level, including prospectuses, statements of additional information (SAIs) and material risk/fee disclosures.
Differentiate common risk types (systematic vs nonsystematic, call, reinvestment, timing/market risk) and connect them to product scenarios.
Differentiate return sources (income/dividends, capital gains, return of capital) and explain why return of capital is not the same as yield.
Differentiate transaction costs from ongoing expenses, including commissions/markups, net transactions, share class expenses and advisory fees.
Describe soft dollar arrangements at a high level and recognize the conflicts-of-interest disclosure theme.
Recognize disclosure themes around variable product compensation and surrender charges (high level).
Apply FINRA Rule 2165 at a high level to recognize scenarios involving possible financial exploitation of specified adults and appropriate escalation steps.
Use market commentary responsibly by avoiding promissory statements and by emphasizing uncertainty and risk.
Account Communications, Records & Transfers
Identify confirmation and account statement components and delivery expectations at a high level (FINRA Rules 2231 and 2232).
Differentiate realized vs unrealized gains and losses and explain where each appears in account reporting.
Describe procedures for change of address and required account record updates, notices and documentation.
Explain books and records retention requirements at a high level and why retention supports supervision and dispute resolution.
Describe account closure procedures at a high level, including documentation and asset-transfer considerations.
Explain ACATS transfers at a high level and identify the purpose of educational communications related to account transfers (FINRA Rule 2273).
Recognize the documentation required for third-party mailings and other special instructions, and why written authorization is commonly required.
Explain why documentation and order tickets support a complete audit trail and help firms supervise sales practice risk.
F4 — Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions (10%)
Explain what quotes represent (bid/ask) and how quotes relate to customer order handling at a high level.
Describe best execution obligations (FINRA Rule 5310) and identify key factors used to evaluate execution quality.
Differentiate market, limit, stop and stop-limit orders at a high level and identify common investor tradeoffs between price certainty and execution certainty.
Identify required order ticket elements conceptually (symbol, quantity, account number, price, time-in-force) and explain why complete tickets support supervision.
Recognize the purpose of compensation disclosures in certain transaction contexts (high level) and why transparency supports investor protection.
Describe execution venues at a high level and why routing and venue choice can affect best execution analysis.
Processing, Settlement & Confirmations
Explain the regular-way settlement cycle concept (SEC Rule 15c6-1) and why settlement timing matters to customer delivery obligations.
Describe good delivery conceptually and identify how delivery problems can impact settlement and customer experience.
Explain the role of automated execution systems at a high level and how they affect speed, audit trails and reporting.
Describe order adjustments at a high level (FINRA Rule 5330) and identify why corporate actions can require order updates.
Identify confirmation requirements at a high level (FINRA Rule 2232 and SEC Rule 10b-10), including the need to disclose key transaction details.
Explain how mutual fund purchase and redemption orders are processed (forward pricing and cutoff concepts) and why “late trading” is prohibited.
Recognize that payment and delivery mechanics vary by product and explain, at a high level, how firms communicate settlement and delivery obligations.
Errors, Complaints & Dispute Resolution
Identify common trade errors (erroneous reports, cancels, rebills) and describe the expectation to escalate and correct promptly.
Explain written customer complaint handling requirements at a high level (FINRA Rule 4513) including recordkeeping and supervision.
Recognize that some events trigger firm reporting requirements (FINRA Rule 4530) and explain the purpose of regulatory reporting at a high level.
Differentiate arbitration, mediation and litigation at a high level and identify the types of disputes commonly resolved in each forum.
Explain Form U4 reporting conceptually and why certain complaints, events or sanctions can require registration record updates.
Recognize FINRA investigations and sanctions concepts at a high level and the importance of escalation and compliance processes.