To become a stockbroker (broker-dealer (BD) agent) in Maine you’ll need to be licensed by the Maine Department of Professional & Financial Regulation, Office of Securities, and registered with a self-regulatory organization (SRO), the largest of which is the Financial Industry Regulatory Authority (FINRA). This requires you to be sponsored by a Maine-registered broker-dealer firm so as to be eligible to take the required exams.
This step-by-step guide will provide you with clear instructions on how to satisfy all requirements so as to begin your career as a securities sales agent in Maine.
Step 1. Get Your Education
Although not compulsory for licensing in Maine, most potential sponsoring broker-dealer firms will require you to have a bachelor’s degree in a relevant discipline.
The following are among the degrees most often pursued by BD agents:
- BS with concentration in Business Administration or Finance
- BS with Economics or Accounting major
- MBA
- BA – Family Finance
Take pertinent classes. Courses grounded in math, finance, economics, sales and accounting would be most relevant to gaining an understanding of securities markets and financial instruments:
- Corporate and general accounting
- Financial modeling
- Corporate and general finance
- Marketing
- Financial markets
- Taxation
- Basic and advanced math
- Strategy management
- Financial planning
Step 2: Pass the Requisite Exams
- Your application to take the required exams is submitted by your sponsoring firm on your behalf. Your sponsoring firm will become your employer upon successful completion of the exams. Pursue sponsorship directly through the broker-dealer firms registered in Maine, including the many smaller independent firms located in the state.
- Apply for the exams. Your sponsoring firm will help you complete the Form U-4 Uniform Application for Securities Registration or Transfer and will submit it on your behalf through the Central Registration Depository (CRD). The CRD account will be charged:
- $50 Maine registration fee
- Fees applicable to all states in which you will serve clients
- $85 FINRA registration fee
- Test fees
The Maine Department of Professional & Financial Regulation, Office of Securities requires you to pass either the Series 63 (Uniform Securities Agent State Law Exam) OR the Series 66 (Uniform Combined State Law Exam). The respective passing scores for these examinations are 72% and 75%.
- The exam fees are:
- $147 for Series 63
- $177 for Series 66
- When your application for the exam is approved, you are authorized to schedule the exams. Your firm will be contacted if there are any missing or additional documents required. Schedule directly with the Prometric or Pearson exam center that is nearest you.
- Some firms offer training and/or other resources for exam preparation. Make use of these resources and prepare thoroughly. Arrive on time ready to test.
- You get to see the outcome of the exam immediately after you are done.
Step 3: Get On-The-Job Training from Your Firm
Your employer will provide you with on-the-job training to promote best practices with regard to creating and retaining a client base, assessing clients’ objectives and financial standing, then aligning them with the most suitable investments. Expect this training to be delivered in classroom based presentation format, as well as through demonstration by observing senior reps engaged in sales calls. Product knowledge training will expand on the securities covered in the Series 7 Exam:
- Stocks and stock options
- Mutual funds
- Corporate, treasury or municipal bonds
- Government securities
- Variable contracts
- Direct participation programs
Step 4: Keep Your Registration Current with Continuing Education
- Annual License Renewal
Your Maine BD agent license expires on December 31 of every year. If you have complied with the Continuing Education (CE) requirements, your firm’s compliance department will renew your license through the Central Registration Depository (CRD) system, paying Maine’s $25 renewal fee on your behalf. - CE Requirements
Broker-dealer agents conform to the Securities Industry Continuing Education Program, which includes two elements:
- The Regulatory Element
Compliance with the regulatory element involves attending a CBT (computer based training) session within 120 days of your second license renewal. After that, the CBT training session is required only once every three years. The regulatory element was created through the joint effort of the Continuing Education Council and the Financial Industry Regulatory Authority (FINRA). The topics presented are relevant to virtually all registered reps and include regulations, compliance, disciplinary actions, and ethics. As part of this element, Series 7 licensees complete the General Program called S101 while Series 6 licensees fulfill the requirements of the S106 (Variable Products Program).
- The Firm Element
Most firm element programs are based on recommendations put forth by FINRA’s Firm Element Advisory. Firm element training may include firm specific products and sales protocols in the context of regulatory compliance. - Updating your Form U-4
Due to the sensitive nature of your work, FINRA provides the BrokerCheck database to allow clients and regulators the ability to access information reflected on your U-4. Keeping this information current is your responsibility. You can do this by notifying your firm’s compliance manager within 30 days of the following:- Changes to your contact information including mailing address
- Civil, criminal or financial judgments against you
- Unresolved or completed corrective actions
- Customer grievances about you
Contact the Maine Office of Securities at:
Mailing address (USPS)
Department of Professional & Financial Regulation
Office of Securities
121 State House Station
Augusta, Maine 04333
Physical Location and Courier deliveries (Fed Ex, UPS)
Department of Professional & Financial Regulation
Office of Securities
76 Northern Avenue
Gardiner, Maine 04345-2829
Phone: 207-624-8551
TTY: 888-577-6690
Fax: 207-624-8590