why does FINRA require firm sponsorship for various series licenses?

Water Cooler
#1

I understand that the licenses are mostly useless if you are not affiliated with a registered firm but why not allow people to take and pass the exams to have the license provisionally untill joing a broker dealer, bank, whatever?

i think there I a valid legal issue with this that I could potentially sue FINRA for not allowing me to take the exam, because with my “specialized skills” I am excluded from job opportunities requiring the examination which “proves” mastery of a field thereby depriving me of the ability to earn a living.

practically, I could deposit 5k tomorrow at a “prop shop” and they would sponsor me to take the exams to be licensed to work as a market maker and just leave after receiving the license, it’s a cop-out to the process, but im more interested in the legal aspect of if there is a basis for a lawsuit? what precedent is there in other industries?

#2

I think it’s something to do with sponsorship or member status in FINRA. FINRA is an industry sponsored organization. So, you have to join a FINRA member company to be eligible for certification under Series X.

#3

An extending Ohais argument, they have more control and influence as a result.

#4

Yes, FINRA is a membership, they can dictate the rules.

#5

Also, you wouldn’t have to deposit anything. Just go join up with Ameriprise. They’ll hire anyone. You’d have to pay for the exams yourself, but they’ll sponsor you.