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The North American Securities Administrators Association (NASAA) plays a crucial role in regulating the securities industry at the state level. One of its primary functions is to oversee the licensing requirements for professionals engaged in securities and investment advisory services. To ensure competency and knowledge of state securities laws, NASAA administers three key exams through the Financial Industry Regulatory Authority (FINRA): the Series 63, Series 65, and Series 66 exams.
The Series 63 exam, also known as the Uniform Securities State Law Examination, is designed for individuals seeking to register as securities agents in various states. It focuses on state securities regulations, ethical standards, and fiduciary obligations.
Exam Details
Administered by FINRA 60 scored questions and 5 unscored questions
Duration: 75 minutes
Passing Score: 43 out of 60 scored questions
The Series 63 is often required alongside other licensing exams, such as the Series 6 or Series 7, for individuals who wish to sell securities.
The Series 65 exam, also known as the NASAA Investment Advisers Law Examination, is required for individuals seeking to become investment adviser representatives (IARs). Unlike the Series 63, the Series 65 focuses more on investment strategies, client interactions, and regulatory compliance.
Exam Details
Administered by FINRA 130 scored questions and 10 unscored questions
Duration: 180 minutes
Passing Score: 92 out of 130 scored questions
The Series 65 is often pursued by professionals who wish to provide investment advice for a fee, without needing to be affiliated with a broker-dealer.
The Series 66 exam, also known as the NASAA Uniform Combined State Law Examination, is an alternative to taking both the Series 63 and Series 65 exams separately. It is designed for individuals who have already passed the Series 7 exam and seek to register as both securities agents and investment adviser representatives.
Exam Details
Administered by FINRA 100 scored questions and 10 unscored questions
Duration: 150 minutes
Passing Score: 73 out of 100 scored questions
The Series 66 is an efficient option for those in the financial services industry looking to streamline their licensing process.
If you are primarily selling securities and need to comply with state registration requirements, the Series 63 is typically required. If you are planning to offer investment advisory services independently, the Series 65 is the best choice. If you already hold a Series 7 license and wish to act as both a securities agent and an investment adviser representative, the Series 66 is the most efficient route.
NASAA exams are essential for professionals in the securities industry to demonstrate their knowledge of state laws and ethical responsibilities. Whether you are looking to register as a securities agent, an investment adviser, or both, understanding the differences between the Series 63, Series 65, and Series 66 exams is crucial for making an informed decision about your career path.
