Becoming a Stockbroker in Oregon

Stockbrokers, better known in the industry as registered representatives, are licensed by Oregon’s Finance & Corporate Securities Division to sell securities for a commission as sales reps for the broker-dealer firms that employ them. Follow these step-by-step instructions to become a stockbroker in Oregon. These steps apply to registered reps of both FINRA (Financial Industry Regulatory Authority) and Non-FINRA member broker-dealer firms.

Step 1. Get Your Education

1. Even though the State of Oregon does not require a securities salesperson to hold a college degree or certificate, it is common for most professionals to do so. Many firms only hire applicants with a four-year degree, although these firms differ widely in what kind of degree they prefer.
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   Professional designations, which come from continuing education after initial licensing, will usually require at least a bachelor’s degree. Bachelor degrees commonly held by Oregon’s registered representatives:

• BS-Business/Finance
• BA-Consumer and Family Financial Services
• BS-Finance
• BA-Finance
• BS in Business Administration- Finance

• Business law
• Behavior of organizations, persons and groups
• Business ethics
• Business communications
• Economics
• Finance
• Marketing
• Statistics
• Quantitative applications in business
• Accounting, especially designed for financial and managerial accounting
• Federal and State Taxation Issues and Rules

Step 2: Take the Required Exams to Become a Stockbroker in Oregon

1. You will need a sponsoring broker-dealer firm to take FINRA’s Series 7 exam. To become sponsored, apply for an open position, or contact the firm you would like to work with.
2. Complete Form U-4, Uniform Application for Securities Registration or Transfer. Your sponsoring firm will facilitate the completion of this form. This will involve detailing your personal education, work, and criminal history. Your sponsoring firm will file this form and pay all fees electronically through FINRA’s Central Registration Depository (CRD). Itemization of all fees associated with sponsoring a registered representative in Oregon:

• A registration fee of $85 will be payable to FINRA
• Test fees of $265 for the Series 7 and $96 for the Series 63 (explained below) will be additional.
• Fingerprints are also required and can be obtained for a nominal fee at a local police station or sheriff’s office. FINRA charges $30.25 to process the fingerprint card.
• The initial registration fee in Oregon is $55.

• Schedule the exam(s) within 120 days of registration, or you will have to re-register and the firm will be charged a re-registration fee.
• Schedule to take the exams on different days, as you won’t be allowed to take both within the same exam session.

Step 3: Get Your On-The-Job Training

After passing the exams, your new firm will continue to provide on-the-job training. This will consist of sales and product knowledge training. Total training time, including test prep, is usually six months.

Sales training will consist of how to legally solicit clients. Product knowledge training will include becoming familiar with a variety of investments products:

• Stocks
• Corporate, municipal and treasury bonds
• Variable contracts
• Government securities
• Open-end and closed-end investment company shares
• Corporate equity and debt securities
• Mutual funds
• Options on stocks
• Direct participation programs like non-publicly traded real estate investment trusts or oil and gas leases

Requirements to Transact Business in States, Other Than Oregon, After You’re Licensed:

Under the De Minimus Exemption, broker-dealer firms that are registered in any other state can conduct a limited amount of business in Oregon, if the firm’s own policy and home state registration permits it. In Oregon, this usually requires registration only after adding a seventh client. Oregon law allows for unregistered, single “inconsequential” transactions to be done with Oregon residents by out of state firms.

Your Oregon-licensed firm may conduct minimal business in other states, which is generally considered to be less than 6 clients, without registering in that state. If the firm gains a seventh client it will take you through the licensing process specific to the state in question.

Step 4: Ongoing Renewal Requirements for Stockbrokers in Oregon

1. Annual License Renewal and Fees
   Annual license renewals are completed through the Web-CRD (Central Registration Depository). In Oregon, stockbrokers have their licenses automatically renewed on the anniversary date of their initial registration. The renewal fee in Oregon is $50, which is paid electronically through the Web-CRD by the broker-dealer firm you work for.
2. Continuing Education Requirements
   As part of the Securities Industry Continuing Education Program, registered representatives are required to fulfill continuing education requirements, which are broken into two elemental categories:
   • The Regulatory Element
     This involves periodic training on material specific to regulatory compliance and ethical sales practices. One regulatory Element training program must be completed at the beginning of your third year in practice within 120 days of your annual registration and then every three years throughout your career. Your firm’s compliance department will keep you abreast of when and how to take part in this ongoing continuing education.

     The Regulatory Element training program that applies to Series 7 licensed registered representatives is known as the S101 General Program. The S101 consists of four modules:

   • Communicating with the Public
   • Client/Product Suitability
   • Handling Customer Accounts/Trade and Settlement Practices
   • New and Secondary Offering & Corporate Finance
   • The Firm Element
     This involves product related training based on the needs of the firm. As a registered representative you will participate in Firm Element training every year. The Firm Element involves training in specific areas and related to specific products as determined by the firm based on their internal evaluation. This most often consists of training related to:
   • Investment features and associated risk factors
   • Sales practices and suitability standards
   • Regulatory requirements related to products, services, and strategies
3. Updating your Form U-4
   As a registered representative you are responsible for informing your supervisor promptly of the need to update your Form U-4. This includes:
   • Address updates
   • Criminal disclosure
   • Financial judgments against you
   • Civil judgments against you
   • Pending or completed disciplinary actions
   • Customer complaints

Clients will be able to review details on your education and credentials, as well as any disciplinary action taken against you, through FINRA’s BrokerCheck.