Series 66, the Uniform Combined State Law Examination

Financial Advisor
Content of the Article
Content of the Article

Before you may begin running as an funding adviser consultant (IAR) in maximum U.S. states, you should skip each Series sixty six, the Uniform Combined State Law Exam, and Series 7, the General Securities Representative Qualification Examination.

Series sixty six is advanced through the North American Securities Administrators Association (NASAA) and administered by the Financial Industry Regulatory Authority (FINRA). (Series 7 is advanced and administered by FINRA.) Passing the Series 66 examination is the equal of passing each Series 65, the Uniform Investment Adviser Law Exam, and Series 63, the Uniform Securities Agent State Law Exam, so there is no need to take those NASAA assessments as soon as you have exceeded Series sixty six. Series 65 is the kingdom regulation take a look at for funding adviser representatives; collection 63 is for broker-dealer representatives.

A registered funding adviser (RIA) refers to a organization, never to a person. An IAR works at an RIA.

Definition of an IAR

According to the Uniform Securities Act of 1956, an IAR is a person employed with the aid of or related to an RIA who does any of the following:

  • Makes investment guidelines or in any other case gives investment recommendation
  • Manages patron debts or portfolios
  • Determines which hints or recommendation concerning securities have to be given
  • Solicits, gives, or negotiates for the sale of or sells funding recommendation
  • Supervises employees who perform any of the above tasks

The Uniform Securities Act of 1956 become a federal law designed to behave as a model for states to create their own securities law legal guidelines. It has been amended and revised several times considering the fact that then.

Exam Basics

Series 66 includes 100 more than one desire questions and covers four broad topics:

  1. Economic elements and enterprise statistics
  2. Investment vehicle traits
  3. Client funding guidelines and strategies
  4. Laws, regulations, and pointers, which include prohibition on unethical business practices

Test takers have a hundred and fifty mins to complete it. A passing rating is seventy three out of a hundred. A candidate who fails the examination have to wait as a minimum 30 days earlier than taking it once more. The same rule applies to someone who has failed a 2d time and who needs to take it a 3rd time. After a 3rd failure, a candidate should wait at least 180 days earlier than taking the exam once more. This equal rule applies to all next failed attempts.

Series sixty six can be taken both earlier than or after Series 7. Series 66 omits questions related to securities merchandise, securities analysis, and investment strategy which might be a massive a part of Series sixty five and also are included at extra duration and detail in Series 7.

Signing Up for the Exam

You may also take Series sixty six even if you aren't currently working for a FINRA member organization. You should join on the FINRA internet site. The fee is $a hundred sixty five.

If you are operating for a FINRA firm, your employer will normally make the request for you by means of filing a Form U4 through FINRA's Central Registration Depository, which is likewise called Web CRD.

Once you have been notified your enrollment has been finished, you will have one hundred twenty days to take the examination at a Prometric or PearsonVue take a look at middle.

Test Preparation

The skip charge for the exam is not publicly available, but Series sixty six is normally considered to be tough. Many folks who are planning to take the examination first entire a take a look at practise path and/or use a have a look at guide with exercise questions.

Getting Licensed

After you have exceeded Series 66 and Series 7, there are usually a few other necessities earlier than a state will come up with a license to work as an IAR. You're commonly required to complete an utility (commonly accomplished with the aid of a firm the use of Form U4) and a history test, get bonded (offer financial safety in opposition to losses for clients), and pay a fee.

The NASAA website gives links to the web sites of the securities regulators in all 50 states.