WealthManagement Magazine

NASD Mistakenly Failed Nearly 2,000 Aspiring Brokers Who Took Series 7 Last Year

Talk about an embarrassing blunder: Aspiring brokers who took and failed the Series 7 exam between Oct. 1, 2004 and Dec. 20, 2005 may have passed the test after all. The NASD reported today that it is notifying 1,882 individuals that they wrongly received failing grades as the result of a software error. The error only affected test takers whose grades were on the cusp of the pass/fail line, which is 70 percent. Over 60,000 people took the exam during the period, and of the 1,882 who received incorrect grades, over 1,000 of them have already re-taken the exam and passed.

Talk about an embarrassing blunder: Aspiring brokers who took and failed the Series 7 exam between Oct. 1, 2004 and Dec. 20, 2005 may have passed the test after all.

The NASD reported today that it is notifying 1,882 individuals that they wrongly received failing grades as the result of a software error. The error only affected test takers whose grades were on the cusp of the pass/fail line, which is 70 percent.

Over 60,000 people took the exam during the period, and of the 1,882 who received incorrect grades, over 1,000 of them have already re-taken the exam and passed.

“NASD will immediately notify the affected individuals and firms,” Robert R. Glauber, CEO of NASD, said in a press release. “In addition, because the integrity of our testing program is fundamental, we have undertaken a full review of this issue and are putting in place enhanced quality control measures designed to prevent a future reoccurrence. As appropriate, we will communicate any corrective measures. We apologize for the problems this caused for the individuals and firms affected.”

The NASD says it will also be contacting firms who sponsored the affected individuals to take the exam and will correct individual records in its Central Registration Depository system.

The Series 7 exam has struck fear into the hearts of wannabe brokers for years, because it covers a broad range of topics, from MSRB rules to stock options. That said, some argue that given the industry’s push to offer comprehensive financial planning advice, the Series 7 is wholly inadequate. For more on that topic, please go to:

http://registeredrep.com/mag/finance_mere_hurdle_clear/index.html

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