The Series 79 exam is the primary FINRA licensing requirement for professionals engaged in U.S. investment banking activities. Designed for representatives who advise on mergers and acquisitions, capital raising, and restructuring transactions, the Series 79 qualifies individuals to act as Investment Banking Representatives under a FINRA member firm. Administered by FINRA and paired with the Securities Industry Essentials (SIE) exam, it is a critical step for anyone seeking to legally perform investment banking functions in the U.S. securities markets.
Crossing the Threshold into IB
When you imagine the path into investment banking—structuring deals, advising M&A transactions, raising capital—those visions are real. But behind the scenes, every IB professional in the U.S. marketplace must surmount regulatory gates. One of the most important is the Series 79 exam.
The Series 79, also known as the Investment Banking Representative Exam, is a FINRA-administered qualification exam that certifies that candidates have the knowledge required to advise or facilitate equity or debt securities offerings (public or private), as well as perform M&A, restructuring, asset sales, and tender offers.
Passing the Securities Industry Essentials (SIE) exam is a co-requisite; both exams must be cleared to register as an Investment Banking Representative.
What the Series 79 Exam Looks Like
Here’s how the exam works today:
- Format: 75 scored multiple-choice questions. All questions on the Series 79 exam are scored.
- Time: 2 hours and 30 minutes (150 minutes)
- Passing Score: 73% (minimum of 55 correct answers out of 75)
- Prerequisites / Sponsorship: You must be sponsored by a FINRA member firm (or applicable SRO) to take the exam.
- Topics Covered: The exam is organized around three major job functions, as defined by FINRA:
1. Collection, Analysis & Evaluation of Data (≈49% of questions)
2. Underwriting / New Financing / Offerings & Registration (≈27%)
3. M&A, Tender Offers & Financial Restructuring (≈24%)
- Eligibility / Application Process: The employing member organization must file a Form U4 (Uniform Application for Securities Industry Registration) on your behalf.
Given its focused scope, the Series 79 is narrower than general licensing exams like the Series 7, but also more specialized and technical.
Why the Series 79 Matters
Legitimacy in Deal Networks
When acting as a registered representative of a FINRA member firm, the Series 79 is required to advise on or facilitate securities offerings, M&A, or restructuring engagements within the scope of investment banking activities. Many institutional clients and counterparties require that sponsors, bankers, or advisors hold this license as evidence of regulatory compliance and competence.
Defining Your Scope
The Series 79 registration defines what you can do — and, just as importantly, what you cannot. For example, while you can help prepare marketing materials, advise on structure, due diligence, valuation, and distribution strategies, certain types of investor solicitation or sales-related activity may require additional registration, depending on the nature of the communication, the transaction structure, and the policies of the sponsoring firm.
Complement to SIE and Other Roles
The SIE exam tests generalized securities knowledge. The Series 79 is the top-off “specialist” exam for investment banking. Together, they qualify you for the Investment Banking Representative registration under FINRA Rule 1220(b)(5).
Differentiator vs. General Licenses
Whereas broad licenses (like Series 7 or Series 24) cover many functions, they come with broader regulation and responsibilities. The Series 79 allows for specialization. In some cases, firms prefer a lighter, more focused credential for their deal teams.
Deep Dive: Exam Content and Challenges
1. Collection, Analysis & Evaluation of Data
This largest section assesses your ability to parse financial statements, disclosures, SEC filings (e.g., Form S-1), prospectuses, and related documents. You’ll be tested on reading and interpreting data, spotting red flags, coordinating with internal teams (legal, compliance, accounting), and constructing due diligence frameworks.
2. Underwriting, New Financings & Securities Registration
Here you must understand the mechanics and regulation of public and private offerings: how securities are registered, the roles of underwriters vs placement agents, SEC filings, shelf registration, pro rata allocation, and marketing material rules.
3. M&A, Tender Offers & Restructurings
This module covers acquiring and disposing business units, fairness opinions, leveraged buyouts, spin-offs, tender rules, debt-for-equity swaps, or distressed reorganizations. You’ll also need awareness of anti-takeover laws, change-of-control provisions, and structuring.
Ethics & Regulatory Overlay
Ethical and regulatory considerations are tested throughout the exam within transactional and advisory scenarios, including conflicts of interest, disclosure obligations, insider trading concerns, and communication standards.
Practicalities & Candidate Tips
- Study Time: Many candidates allocate 60–100 hours of focused prep.
- Materials & Practice Exams: Use reputable prep providers (Kaplan, Wall Street Prep, etc.). Take full-length mocks under exam timing.
- Retake Policy: If you don’t pass, wait 30 days (for first and second retakes); after the third failure, a 180-day waiting period applies.
- Exam Fee: The Series 79 exam fee is $245, as set by FINRA.
- Co-requisites & Timing: You can take SIE and Series 79 in any order, but both must eventually be passed.
Why Every Dealmaker Should Care
If you're building a cross-border practice or advising U.S. clients, the Series 79 determines where you can play:
- Institutional clients expect regulatory credentials.
- Certain workflows (capital raises, PIPEs, M&A) require you to legally hold this registration.
- It sets the boundaries of your permissible role. Want to help run the roadshow or talk to investors? You may need additional registration.
- For non-U.S. professionals affiliating with U.S. broker-dealers, the Series 79 often becomes part of onboarding into the U.S. capital markets stack.
It can be challenging to determine which exams are appropriate for your specific line of business. To help, we've provided a list of the most common FINRA qualification exams for those looking to establish and grow a career in M&A, investment banking, or becoming a placement agent.
The Finalis Perspective
The Series 79 exam is not optional for serious U.S. investment banking. It’s the credential that underwrites your authority to advise, structure, and execute major capital-market transactions in America.
For professionals aiming to build cross-border deal flow, affiliate with U.S. broker-dealers, or elevate their regulatory legitimacy, it's not just an exam — it's a milestone in your capacity to compete.
