This post was originally published on May 7th, 2024, and updated on May 26th, 2025.
The Series 79 exam, officially titled the Investment Banking Representative Qualification Examination, is a FINRA-administered assessment designed for professionals aiming to become licensed investment banking representatives. It evaluates knowledge across core areas such as mergers and acquisitions, debt and equity offerings, and financial restructuring, and is required for individuals who advise on or facilitate these types of transactions.
The Series 79 exam exists to tailor qualification standards to the investment banking profession, ensuring that candidates are tested specifically on knowledge relevant to their role.
The exam is focused on tasks typical to investment bankers, such as advising on and executing equity and debt offerings, facilitating merger and acquisition deals, and supporting financial restructurings. These tasks often involve complex financial modeling and deal structuring that differ from retail securities or brokerage operations. By limiting the license to investment banking activities, FINRA ensures that professionals are not tested on irrelevant subject matter like municipal securities or options trading.
Series 79 is aligned with FINRA Rule 1220(b)(5), which clearly defines the activities requiring registration as an Investment Banking Representative. This includes participation in public offerings, private placements, financial advisory services related to restructurings or mergers, and other corporate finance responsibilities. This focused regulatory scope also helps employers and clients distinguish between various categories of FINRA-registered professionals.
Eligibility for the Series 79 exam is based on industry registration rules and sponsorship, ensuring that candidates are backed by legitimate institutions.
To take the Series 79 exam, candidates must be sponsored by a FINRA-member firm. The sponsoring firm submits Form U4 (Uniform Application for Securities Industry Registration or Transfer) through FINRA’s Web CRD system. There are no specific academic or professional prerequisites, but most successful candidates come from finance, economics, or related business backgrounds, as the exam requires familiarity with financial statements, valuation methodologies, and regulatory frameworks.
In addition to the Series 79, candidates must also pass the Securities Industry Essentials (SIE) exam. This co-requisite provides foundational knowledge on topics such as capital markets, investment products, and regulatory agencies. The SIE can be taken before or after securing sponsorship for the Series 79, but both must be passed to register as an Investment Banking Representative.
The Series 79 exam consists of several distinct topic areas that reflect the scope of responsibilities in investment banking roles.
The exam contains 85 multiple-choice questions in total, of which 75 are scored and 10 are unscored pretest items used to evaluate new questions. The time allotted for the exam is 150 minutes. The questions are randomly distributed, and candidates receive immediate results indicating pass or fail upon completion.
This section evaluates a candidate’s ability to interpret and assess financial statements and business metrics. Tasks include analyzing income statements, balance sheets, and cash flow statements. Candidates are also expected to perform comparative company analyses (comps), precedent transaction analyses, and discounted cash flow (DCF) valuations. Due diligence practices, including risk assessment and data verification, also fall within this category.
This portion of the exam tests the candidate’s knowledge of securities registration and offering processes. Topics include differences between public offerings and private placements, Regulation D and S rules, and the process of drafting registration statements like S-1 or S-3 filings. Book-building, deal pricing, stabilization, and managing syndicates are also emphasized. Knowledge of regulations such as Regulation M and Rule 144A is expected.
This section focuses on strategic advisory services related to corporate transactions. Candidates must understand deal structures (asset purchases, stock purchases, mergers), fairness opinions, and takeover defenses. Tasks include advising on tender offers and navigating Chapter 11 bankruptcy or distressed M&A scenarios. Candidates must also understand fiduciary duties, confidentiality agreements, and engagement letters.
Thorough preparation is necessary given the technical content of the Series 79 exam. A structured study routine and familiarity with financial models improve the likelihood of passing.
Most candidates use commercial prep providers such as Kaplan, STC, or Knopman Marks. These programs typically offer detailed textbooks, video lectures, quizzes, and simulated exams. Providers also offer performance tracking to identify weak areas and refine the study plan.
Candidates should allocate at least 80 to 120 hours for study, spread over 6 to 8 weeks. A balanced schedule includes daily reading, regular quizzes, and weekly full-length practice exams. Reviewing explanations for both correct and incorrect answers sharpens understanding. The final week should be used for review and repetition.
A significant portion of the Series 79 exam requires interpreting numerical data. Candidates should be proficient in calculating enterprise value, analyzing financial ratios, modeling future cash flows, and understanding leverage metrics. Being comfortable with Excel or financial calculators is also beneficial.
FINRA applies consistent scoring standards to ensure fairness across test administrations.
The minimum passing score for the Series 79 exam is 73%. This means candidates must answer at least 55 of the 75 scored questions correctly. While the actual questions may vary, the difficulty is calibrated so that this benchmark remains consistent across exam versions.
If a candidate does not pass, FINRA enforces a 30-day waiting period before retaking the exam. After three unsuccessful attempts, the waiting period increases to 180 days. There is no limit to the number of times a person can attempt the exam, but each attempt requires a new sponsorship and filing of Form U4.
Once you have passed the Series 79 exam, you can now prepare for your investment banking interview.
A few distinguishing details help clarify the role and scope of the Series 79 license compared to other securities qualifications.
The Series 79 license does not authorize its holder to engage in retail brokerage or portfolio management. It is limited to investment banking functions like advising on M&A deals, handling public offerings, or guiding companies through restructurings. To conduct retail securities transactions or offer general investment advice, additional licenses like Series 7 or Series 65 are required.
Upon passing the Series 79 exam and satisfying co-requisites, individuals are registered as Investment Banking Representatives under FINRA. This designation must be maintained through active employment at a FINRA-member firm and is monitored through the Central Registration Depository (CRD) system.
Registered individuals are subject to continuing education obligations. The Regulatory Element must be completed within two years of registration and every three years afterward. The Firm Element, which is administered by the employing firm, addresses job-specific training needs and is conducted on an annual basis.
As long as a professional remains employed by a FINRA-member firm, the Series 79 license remains valid. If the individual leaves the industry, the license can be maintained for up to two years without re-examination. After that period, the exam must be retaken to regain registration status.
For more details on the exam content outline and requirements, visit the official FINRA Series 79 resource page.
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