SEC Supports FINRA on Requiring Series 79 Exam for Investment Banking

The SEC upheld FINRA’s decision not to grant a waiver of the Series 79 (investment banking) exam to a registered representative even though FINRA granted a waiver of his Series 7 exam. Citing the FINRA waiver guidelines, the SEC said that the petitioner did not specifically describe his investment banking experience and that he had only general securities experience and did not describe the “wide variety of tasks that the Series 79 examination qualifies one to perform.” The petitioner did receive a waiver for his Series 7 because his license had lapsed as the result of financial problems at his prior firm. Because his Series 7 lapsed, he could not opt in to the Series 79 without taking the exam within the limited opt-in period. FINRA also did not give weight to his lack of disciplinary history.