Key Takeaways
- Qualifies securities agents and investment adviser reps.
- Combines Series 63 and Series 65 content.
- Must be taken with Series 7 exam.
- Focuses heavily on state laws and ethics.
What is Series 66?
The Series 66 exam, known as the Uniform Combined State Law Examination, qualifies individuals to act as both securities agents and investment adviser representatives (IAR) under state law. It combines essential content from the Series 63 and Series 65 exams and is typically taken alongside the Series 7 exam.
This exam focuses on state securities regulations, ethics, and advisory practices, enabling you to provide investment advice and execute securities transactions legally in most U.S. states.
Key Characteristics
Understanding the main features of the Series 66 exam helps you prepare efficiently.
- Dual Qualification: Pass Series 66 with Series 7 to become licensed as both a securities agent and an investment adviser representative.
- Exam Format: 110 multiple-choice questions, with 100 scored and a 150-minute time limit.
- Passing Score: Requires at least 73% correct answers to pass.
- Content Focus: Emphasizes state laws, ethics, fiduciary duties, and client investment strategies rather than product knowledge.
- Eligibility: Must be at least 18 years old and sponsored through FINRA, except for certain cases.
How It Works
You study for the Series 66 by focusing on topics like economic factors, investment vehicle characteristics, and regulatory requirements. The exam tests your ability to apply state securities laws and ethical standards to real-world advisory scenarios.
After passing the Series 7 exam, completing Series 66 allows you to register as an IAR and securities agent, expanding your career options in brokerage and advisory roles. Preparation often involves reviewing regulations and practicing scenario-based questions relevant to client profiles and investment suitability.
Examples and Use Cases
The Series 66 is essential for professionals advising on or managing investments in various financial products and entities.
- Equity Investments: Advising clients on shares of companies like Delta requires understanding both securities regulations and client suitability.
- Retirement Planning: Offering guidance on IRAs or qualified plans benefits from knowledge of fiduciary duties and economic factors covered in the exam.
- Investment Vehicles: Understanding alternatives such as hedge funds or limited partnerships complements your advisory services.
- Portfolio Choices: You might recommend low-cost index funds or dividend stocks based on a client’s risk tolerance and financial goals.
Important Considerations
Passing the Series 66 exam is a critical step, but you must stay current with evolving regulations and ethical standards to maintain compliance and client trust. State requirements can vary, so verify specifics where you plan to register.
Additionally, understanding complex investment structures like a C-corporation or obligations under different security types strengthens your advisory capabilities in diverse market conditions.
Final Words
The Series 66 exam streamlines qualification for securities agents and investment adviser representatives by combining key regulatory content. To move forward, evaluate your readiness alongside the Series 7 exam and schedule your test date at a Prometric center.
Frequently Asked Questions
The Series 66 exam, or Uniform Combined State Law Examination, qualifies individuals as both securities agents and investment adviser representatives. It is typically taken alongside the Series 7 exam by financial professionals who want to sell securities and provide investment advice under state laws.
The Series 66 exam consists of 110 multiple-choice questions, with 100 scored and 10 unscored pretest questions. Candidates have 150 minutes to complete it, and must score at least 73% correct to pass.
The exam covers economic factors, investment vehicle characteristics, client investment strategies, and laws and ethics related to securities and advisory services. The largest portion focuses on laws, regulations, and ethical practices, making up about 45% of the exam.
Candidates must be at least 18 years old and require sponsorship through FINRA Form U4, except if taking the Securities Industry Essentials (SIE) exam independently. The Series 66 is always taken alongside the Series 7 exam.
The exam is administered at Prometric testing centers located across the United States, Canada, Mexico, and U.S. territories.
Preparation typically involves 20-30 hours over about three weeks, using practice exams, flashcards, and study outlines aligned with NASAA specifications. Many candidates find it helpful to review regulatory content and ethics thoroughly.
The Series 66 exam focuses on state laws and advisory regulations, while the Series 7 covers product knowledge. Taking both exams together enables financial advisors to sell securities and offer investment advice without redundant testing.
