Series 65 Exam: Everything You Need To Know

The Series 65 Exam is the Uniform Investment Adviser Law Exam. The test is  administered by the North American Securities Administrators Association. It assesses understanding of the information needed to be an investment advisor representative.

There are a large number of reasons why candidates seek to become series 65 licensed. Some are entering the financial services business for the first time. Others are more established financial service professionals. Seeking to expand their product offerings to their clients. A series 65 license is required to offer managed account platforms to clients. Many managed accounts charge asset based fees and allow agents to share in the fees. As such, these representatives will need a series 65 license. If you are joining a stand-alone advisory firm, you must obtain the series 65 license. 

A series 65 license allows you to register as an investment adviser representative. This license will allow you to represent an investment advisory firm.  Series 65 agents may offer advice to clients.  On the purchase and sale of securities, the value of securities and or in the creation of financial plans. This advice is given  for a fee. The series 65 license lets you share in the fees charged by the advisory firm. Most fees are charged as a percentage of assets in the account, known as assets under management or AUM. Other fees can be charged in the form of:

• hourly fees 
• subscription fees for newsletters 
• a flat fee for the creation of a financial plan. 

Regardless of how your advisory firm charges fees, a series 65 license is required. Your series 65 license will not allow you to earn commissions for executing orders.

No. The North American Securities Administrators Association does not require candidates to be sponsored. Candidates may submit form U10 to open an exam window.  Series 65 test takers who work at a FINRA member firm submit or update their Form U4.

The Series 65 Exam is presented in a multiple choice format. Each question will have four possible answers presented in A B C D format. The exam is designed to test the candidates’ mastery of general securities industry knowledge. Candidates must answer every question on the exam and will not be allowed to proceed to the next question until an answer has been selected.

The Series 65 Exam consists of 130 multiple-choice questions that must be answered and completed. The exam has a time limit of 3 hours. In addition to the 130 scored questions, each series 65 exam will contain experimental questions. These questions are not identified during the test. Nor do they count towards the candidate’s final score. Each exam provides additional time for test takers to answer these questions.

The test provides enough time for candidates to answer each question presented. The 3 hour time limit translates into 1.4 minutes per question. Test takers who have challenges interpreting questions, may find themselves pressed for time. Rushing to answer every question has a negative impact on performance. Ensure you have the ability to complete the test in the time allotted. To do this you must take 130-question practice tests. Taking series 65 practice exams is a big part of any candidate’s exam preparation. The questions presented are challenging. Students must have a deep understanding of the critical information required to pass.

The passing score for the Series 65 Exam is 70%. Candidates must answer 91 of the 130 questions correctly.

Candidates taking the Series 65 Exam get the results of the exam immediately upon completion. A candidate who passes the exam will receive a grade of “pass”. FINRA does not provide a numeric score.

If you fail the Series 65 Exam, you will receive a numeric exam score. A range of performance for each of the basic knowledge sections is also provided.  You must wait 30 days before taking the exam a second time. If you are unsuccessful on your second attempt, you will be subject to another 30 day waiting period. A third failed attempt subjects the student to a 6-month waiting period. The 180 day waiting period must lapse before a candidate may schedule the Sries 65 Exam again.

The Series 65 Exam tests candidates’ mastery of critical knowledge.  This is the information an investment adviser representative must know to perform his / her duties. The questions will cover a variety of investment vehicles. Including:

• Equities
• Debt securities
• Mutual funds
• Investment company securities
• Real estate investment trusts (REITS)
• Annuities
• Municipal bonds
• Government securities
• Direct participation programs
• Options

The series 65 exam will contain detailed portfolio management questions relating to:

• The internal rate of return 
• Alpha
• Beta
• The Sharpe Ratio
• Expected return 
• Present and future value 
• Economics   

The exam will also contain many questions on the following regulations :

• The powers of the state securities administrator
• The Uniform Securities Act
• The Investment Advisers Act
• The Uniform Prudent Investors Act
• The Securities Exchange Act
• Registration of broker dealers, investment advisers and agents
• Registration of issuers and securities 
• Exempt transactions  
• NASAA Model Rules and Interpretive Opinions 
• Securities industry rules and regulations
• Prohibited practices
• Taxation 

NASAA’s official series 65 exam outline is broken down into the following areas:

1. Economic Factors and Business Information – 20 questions
2. Investment Vehicle Characteristics – 32 questions
3. Client Investment Recommendations and Strategies – 39 questions
4. Laws, Regulations and Guidelines Including Prohibition on Unethical Business Practices – 39 questions

The series 65 exam presents challenges for most test takers in one area or another. The information tested covers complex topics relating to:

• Portfolio management
• Client recommendations and strategies
• The powers of the state securities administrator. 

To be successful and become series 65 licensed you must prove you have mastered these areas. Every person who sits for the series 65 exam is coming from a different background. What one person finds easy to master, another may find very challenging. The advanced portfolio concepts and adviser registration are the most challenging areas. You should prepare for the exam by reading a textbook completely with a highlighter. You must read the book, there are no shortcuts and students need to understand this. You must clear your schedule, shut off your phone and focus. In addition to obtaining the knowledge required by the exam, you must master the application.of the information. To do this take as many practice questions as you can. We recommend at least 60 – 70 hours of preparation. This will ensure you pass your series 65 exam. And become licensed to represent a registered investment adviser. 

The answer is, that while it feels like your series 65 license is indeed transferable, in actuality it is not. If you want to change firms, your series 65 registration / license along with all of your other registrations must be terminated by your employer. If you are registered at a FINRA member firm, Your former employer / the firm that you are leaving will fill out and submit a Form U5 to FINRA. This will terminate your employment and your registration with that firm. When you arrive at your new firm you must fill out and submit a new Form U4. This will begin your registration with your new firm and your series 65 license will become active at your new firm upon receiving notice from FINRA and the states where you conduct business. If you are associated exclusively with a registered investment advisory firm, your firm will initiate and terminate individual registrations through the investment adviser registration database or IARD. It is important to note that passing the exam does not grant you a license. Your license will only become effective once you have received notification from each state where you plan to conduct business, that you license has become effective.

You must make an investment in your professional development. Your Series 65 license empowers you to earn fees for investment advice. Many Series 65 licensed representatives enjoy lucrative and successful careers. If you have to pay out of pocket, the costs are relatively low. This is true compared to other certifications and college expenses. Some employers pick up or reimburse the costs.  The cost to take the series 65 exam include:

• Training materials
• Testing fees
• Registration fees

Our most comprehensive training package for the series 65 exam is $209. This comes with everything you need and includes free shipping. Other providers charge as much as $400 for similar packages.

The testing fee for the series 65 exam is $187.

Professional proctors control and watch Prometric test centers. The staff safeguard the integrity of the exam. The testing room is set up much like a computer lab you would see at a college or library. Each computer in the testing area is administering a different exam to test takers. Some individuals may be taking the Series 65 or Series 7 exam. While others may be taking an exam in a completely different industry.  There is no reference material of any kind in the testing area. The center provides a basic 4 function calculator and scratch paper or a dry erase tablet. Only take your appointment confirmation and a government issued ID.  A driver’s license, passport or Military ID are acceptable. Make sure your identification is valid and not expired.  The testing proctors will check your ID and take a thumbprint to verify your identity. Make sure you know where the center is. You should have clear directions. Do not add to the stress by getting lost or looking for parking. If you live in a remote area and the center is far away, you should consider staying in a local hotel. Arrive at least 20 minutes before your scheduled exam appointment.

Your series 65 license is most likely the only license you will need if you plan on conducting business exclusively at a stand-alone investment advisory firm. If you wish to represent a broker dealer and to receive commissions on securities transactions you will be required to obtain a series 6 or 7 license.

It is very important to choose your Series 65 study material carefully. Quality study material produced by a professional level publisher is key. At a minimum your training materials should contain:

• A comprehensive textbook

• Well produced video training classes

• Challenging test banks

Always start with the textbook. Our Series 65 textbook is the foundation of our learning system. This book has everything you need to be successful.  Our series 65 textbook is comprehensive and easy to follow. We strongly recommend that every student read the book completely. Take notes on key points. This will ensure you know more than the basics, it will ensure you know the facts. 

Our series 65 video lectures follow our textbooks chapter by chapter. Each lecture provides more details on the content contained in the reading. Different examples show you how the concepts are tested. Best of all, we include feedback from thousands of actual series 65 test takers. This will help you master the material. Make sure you watch each video lecture to ensure complete understanding. Every video lecture is followed by a quiz. This tests your immediate comprehension of the material.

From there move to the practice tests. Take topic focused custom quizzes. Go back to the videos and chapters in the textbook to firm up areas of weakness.  Now you are ready to take simulated final exams.  Take as many as you can and keep track of your results. The more you practice the more prepared you will be. You should be scoring approximately 80% on your finals prior to sitting for the real series 65 exam. 

Our Series 65 study material will ensure your success on exam day. Complete with a comprehensive physical textbook, Video lectures and challenging test banks. We are so confident in our Series 65 training course. that we offer you a money back greenlight pass guarantee. Review our Series 65 Exam prep features here