What happens when your Series 7 license lapses and how to get it back

Your Series 7 license lapses when you stop working in a position that requires it and do not renew it before the expiration date. Once it lapses, you cannot legally conduct securities business or supervise others doing so. The path back depends on how long ago it expired and whether you want to return to active securities work or straightforward restore the license to inactive status.

If your license expired fewer than two years ago, FINRA allows you to reinstate it by filing Form U4 with your new or returning firm and paying the reinstatement fee — no exam required. If it has been more than two years, you must retake the Series 7 exam before reinstatement. Either way, your firm's compliance department handles most of the paperwork, but you need to understand what they will ask you and what to expect at each step.

Key Takeaways

  • Licenses expired fewer than two years can be reinstated through your firm without retaking the exam, but licenses expired longer than two years require you to pass the Series 7 exam again.
  • Your sponsoring firm must file Form U4 with FINRA to begin reinstatement, and you cannot work in a Series 7 role until FINRA approves the reinstatement.
  • FINRA charges a reinstatement fee that varies depending on whether you are returning to an active or inactive status.
  • You will need to disclose any regulatory actions, criminal charges, or civil judgments that occurred while your license was lapsed.

Determine whether your license qualifies for reinstatement without an exam

Check your CRD (Central Registration Depository) record to find your exact expiration date. You can view this through your firm's compliance system or by contacting FINRA directly. Count forward from that date — if fewer than 24 months have passed, you can reinstate without retaking the Series 7.

If more than 24 months have passed, you must sit for the Series 7 exam again before reinstatement can proceed. This is a hard cutoff; FINRA does not grant exceptions based on how close you are to the two-year mark. Schedule your exam through Prometric, the testing vendor, and plan for at least two to four weeks of study time if you have not reviewed the material recently.

Work with your firm to file Form U4 for reinstatement

You cannot file Form U4 yourself — your sponsoring firm must submit it on your behalf. Contact your firm's compliance or registration department and tell them you want to reinstate your Series 7. They will ask you to complete a reinstatement questionnaire that covers any regulatory actions, criminal charges, civil judgments, or customer complaints that occurred while your license was lapsed.

Answer these questions completely and honestly. FINRA cross-checks your answers against public records, and omissions or false statements can delay approval or result in denial. If you have any doubt about whether something must be disclosed, ask your compliance department — they have seen hundreds of reinstatement cases and can tell you what FINRA will want to know.

Your firm will also need to confirm your employment status and the role you will hold. If you are returning to active securities work, they will list your position and the branch where you will work. If you are reinstating to inactive status (meaning you will not conduct securities business but want to maintain the license), they will note that as well.

Pay the reinstatement fee and wait for FINRA approval

FINRA charges a reinstatement fee that depends on your status. As of the most recent fee schedule, reinstatement to active status costs one amount, while reinstatement to inactive status costs less. Your firm's compliance department will tell you the exact fee and may collect it from you or deduct it from your first paycheck.

After your firm submits Form U4, FINRA typically responds within two to four weeks. During this time, you cannot work in a Series 7 capacity, even if your firm has hired you or brought you back. Some firms allow you to perform non-registered duties while waiting, but this varies by firm policy. Ask your compliance department what you can do during the approval period.

FINRA will send approval or a request for additional information to your firm's compliance contact. If they request more information, respond promptly — delays in providing documents can extend the timeline by weeks.

Retake the Series 7 exam if your license expired more than two years ago

If your license has been expired for more than 24 months, you must pass the Series 7 exam before reinstatement can be approved. Your firm will still file Form U4, but FINRA will not finalize reinstatement until you provide proof of a passing exam score.

Register for the exam through Prometric at least two weeks before your preferred test date. You will need to pay the exam fee (currently around $300, though this may vary) and bring a valid government-issued photo ID to the testing center. The exam is four hours long and covers the same material as the initial Series 7 — securities products, trading rules, compliance, and customer protection.

After you pass, Prometric sends your score to FINRA automatically. Your firm's compliance department can then confirm to FINRA that you have met the exam requirement, and reinstatement approval typically follows within one to two weeks.

Understand what happens if FINRA requests more information

FINRA may ask for clarification on any disclosure you made in the reinstatement questionnaire, or they may request documents related to regulatory history, criminal charges, or civil judgments. Common requests include court documents, settlement agreements, or written explanations of what happened and what you learned.

Your firm's compliance department will forward these requests to you. Respond in writing and provide whatever documentation FINRA asks for. Do not assume that a minor issue will be overlooked — FINRA reviews reinstatement cases carefully, and incomplete responses delay approval.

If FINRA has concerns about your fitness to hold a Series 7 license based on your disclosure, they may deny reinstatement or require you to attend a hearing. This is rare for routine lapses, but it can happen if there are serious regulatory or criminal matters in your history. If you face denial or a hearing requirement, consult with a securities attorney before proceeding.

Know what to expect after reinstatement is approved

Once FINRA approves your reinstatement, your CRD record will show your license as active (or inactive, depending on what you requested). You can then begin working in a Series 7 role when ready. Your firm will provide you with any required compliance training or updates to firm policies that have changed since you left.

Keep your license current by meeting continuing education requirements. Series 7 holders must complete 120 hours of continuing education every three years, with specific hour requirements in different categories. Your firm's compliance department tracks this and will remind you of important date.

Frequently Asked Questions

Can I work while my reinstatement is pending?

No, you cannot conduct securities business or supervise others in a Series 7 capacity until FINRA approves your reinstatement. Some firms allow you to work in non-registered roles during the approval period, but this is at the firm's discretion. Ask your compliance department what you can do while waiting.

What if I have a criminal charge or civil judgment from while my license was lapsed?

You must disclose it in the reinstatement questionnaire. FINRA will review it as part of the reinstatement decision. Disclosure does not automatically result in denial, but omitting it or providing false information will. Be honest and let your compliance department help you frame the disclosure clearly.

How long does reinstatement usually take?

For licenses expired fewer than two years with no complications, reinstatement typically takes two to four weeks from the time your firm submits Form U4. If you need to retake the Series 7 or if FINRA requests additional information, add two to six weeks. Delays can occur if you do not respond promptly to requests.

Do I have to reinstate to active status, or can I keep it inactive?

You can reinstate to either active or inactive status. Inactive status means you hold the license but are not conducting securities business. This costs less in fees and requires no employment with a firm, but you still must meet continuing education requirements to keep it current.

What if my firm goes out of business before my reinstatement is approved?

You will need to transfer your registration to a new sponsoring firm before reinstatement can be completed. Contact a new firm and have them file an amended Form U4 to take over sponsorship. This can delay approval, so notify your new firm as soon as possible if your original firm closes.