Series 6 tests a short list of investment-company and conduct numbers. Every figure here is a published FINRA, SEC, or IRS rule — not a vendor mnemonic.
Mutual fund sales charges (FINRA Rule 2341)
| Rule |
Number |
| Maximum sales charge (with breakpoints and rights of accumulation) |
8.5% of the offering price |
| Typical modern load (many funds) |
Well below the 8.5% cap — still learn the cap |
| 12b-1 distribution fee maximum |
0.75% of average annual net assets |
| 12b-1 service / shareholder fee maximum |
0.25% |
| Combined 12b-1 cap |
1.00% |
| "No-load" 12b-1 limit |
0.25% or less (and no front-end or CDSC) |
Breakpoints, LOI, and rights of accumulation
| Item |
Rule |
| Letter of intent (LOI) window |
13 months |
| Rights of accumulation |
Prior purchases in the same fund family count toward the next breakpoint |
| Breakpoint sales |
Selling just under a published breakpoint to keep a higher load is a violation |
| Forward pricing |
Buy and sell orders get the next computed NAV, not the last one |
Investment Company Act basics
| Item |
Number |
| Redeem open-end shares |
Fund must pay within 7 calendar days |
| Diversified company (75-5-10) |
75% of assets in limited positions; no more than 5% in one issuer in that bucket; no more than 10% of an issuer's voting stock |
| RIC income test (pass-through tax) |
At least 90% of income from securities and similar sources |
| RIC distribution test |
Distribute at least 90% of taxable income to shareholders |
| Independent directors (12b-1 or affiliated underwriter) |
majority of the board must be independent |
Variable contracts
| Item |
Rule |
| Free-look |
Set by state insurance law (often about 10 days — do not memorize one federal day-count) |
| 1035 exchange |
Tax-free swap of one annuity/life contract for another that qualifies |
| Earnings withdrawn |
Taxed as ordinary income; a 10% IRS penalty can apply before age 59½ |
| Separate account |
Registered as an investment company; general account is the insurer's balance sheet |
Retirement clocks (IRS)
| Rule |
Number |
| Penalty-free withdrawals (most plans) |
Age 59½ |
| Early-withdrawal penalty |
10% (plus ordinary income tax) |
| Required minimum distributions begin |
Age 73 (SECURE 2.0; later cohorts move to 75) |
| Roth earnings tax-free |
Account open 5 years and a qualifying event |
Contribution dollar caps change every year. Learn the clocks above; look up the current-year dollar limits when you sit the exam.
SIPC, FDIC, gifts, AML
| Coverage / rule |
Limit |
| SIPC total per customer |
$500,000 |
| SIPC cash sublimit |
$250,000 |
| FDIC per depositor per bank |
$250,000 |
| FINRA gift limit |
$100/year per recipient |
| Currency Transaction Report (CTR) |
$10,000+ cash |
| Suspicious Activity Report (SAR) |
$5,000+ suspicious |
Settlement (after May 2024)
| Product |
Cycle |
| Most securities, including fund shares that trade |
T+1 |
| Open-end mutual fund purchase/redemption |
Priced at the next NAV; cash movement follows the fund's prospectus |
