What Is the Series 79 Exam?

The Series 79, officially known as the Investment Banking Representative Qualification Examination, is a securities licensing exam administered by FINRA (Financial Industry Regulatory Authority). It qualifies individuals to engage in specific investment banking activities in the United States, primarily focused on capital markets and advisory work related to corporate finance. It is designed for professionals whose role involves advising on or facilitating debt and equity offerings, mergers and acquisitions (M&A), restructuring transactions, and certain other capital-raising or financial advisory services.

This exam is a prerequisite for those seeking to become Investment Banking Representatives under FINRA Rule 1220(b)(5).

Purpose and Scope of the Series 79

The Series 79 was introduced in 2009 to address the unique responsibilities of professionals working in investment banking, as distinct from those operating in general securities sales, trading, or retail brokerage. Previously, many investment bankers were required to pass the broader Series 7 exam, which included content irrelevant to their roles. The Series 79 narrowed the scope to focus specifically on corporate finance, deal structuring, and transaction advisory work.

A candidate who passes the Series 79 exam is authorized to work on a range of activities, including:

• Public offerings (IPOs and follow-on offerings)
• Private placements of securities
• Debt and equity financings
• Mergers and acquisitions
• Tender offers and exchange offers
• Corporate restructurings, such as bankruptcies and asset sales
• Fairness opinions and valuation analysis

However, it does not permit activities such as equity research, retail brokerage, or direct securities trading. For those functions, other exams such as Series 7 or Series 63 may be required.

Exam Structure and Format

The Series 79 exam is a multiple-choice test consisting of 75 scored questions, with an additional 10 unscored pretest questions. The exam must be completed within 150 minutes. A passing score is 73%, which equates to 55 correct answers out of the 75 scored questions.

The test is broken down into the following major content areas:

1. Collection, Analysis, and Evaluation of Data
   This section covers financial statement analysis, understanding company performance, and preparing industry and comparable company analyses. It assesses a candidate’s ability to work with quantitative and qualitative financial data to inform investment banking decisions.
2. Underwriting/New Financing Transactions, Types of Offerings, and Registration of Securities
   This section evaluates knowledge of how securities offerings are structured, marketed, and registered with the SEC, including IPOs and follow-on offerings.
3. Mergers and Acquisitions, Tender Offers, and Financial Restructuring Transactions
   This part tests a candidate’s understanding of deal structuring, transaction process management, and regulatory compliance in M&A and related activities.
4. General Securities Industry Regulations
   This section includes rules and compliance requirements that govern investment banking activity, including anti-fraud provisions, ethical standards, and communications with the public.

The exam is administered year-round at authorized testing centers or online via remote proctoring. Before taking the Series 79, candidates must also pass the Securities Industry Essentials (SIE) exam if they haven’t already done so.

Registration Requirements and Sponsorship

To take the Series 79, an individual must be associated with a FINRA-member firm, which acts as a sponsor. The firm files a Form U4 (Uniform Application for Securities Industry Registration or Transfer) on behalf of the candidate. Once approved, the candidate receives a window to schedule and complete the exam.

Passing the Series 79 does not, by itself, authorize a professional to solicit business from retail clients or to offer investment advice. Depending on the nature of their work, representatives may need additional licenses, such as the Series 63 (Uniform Securities Agent State Law Examination), to comply with state-level registration requirements.

Continuing Education and Regulatory Compliance

After passing the Series 79, registered representatives are subject to FINRA’s continuing education requirements. This includes both a Regulatory Element, which must be completed within 12 months of the second anniversary of registration and every three years thereafter, and a Firm Element, tailored by the employing firm based on the representative’s role and business practices.

Ongoing compliance with FINRA and SEC rules is critical. Investment banking representatives must adhere to strict ethical standards and maintain accurate records of all communications and transactions. Misconduct can result in fines, suspensions, or loss of licensure.

Who Should Take the Series 79

The Series 79 is intended for individuals working in or pursuing a career in investment banking, particularly in roles involving:

• Corporate finance advisory
• Deal origination and structuring
• Transaction execution and due diligence
• Valuation and fairness opinion preparation
• Capital markets transactions

Typical job titles for individuals holding the Series 79 license include Investment Banking Analyst, Associate, Vice President, or Managing Director at boutique or bulge-bracket investment banks. Professionals in corporate development or strategic advisory roles at consulting firms or financial institutions may also pursue the license if their work falls under FINRA’s definition of investment banking activity.

The Bottom Line

The Series 79 is a specialized FINRA exam that authorizes professionals to perform investment banking activities such as underwriting and M&A advisory. It was designed to better align licensing requirements with the specific duties of investment bankers. Candidates must be sponsored by a FINRA-member firm and must also pass the SIE exam to become fully licensed. The credential is essential for professionals advising on large-scale corporate finance transactions, ensuring they meet regulatory standards and possess a foundational knowledge of securities laws, financial analysis, and deal structuring.