Series 66 Exam: Everything You Need To Know

The series 66 exam is the Uniform Combined State Law Exam. The test is  administered by the North American Securities Administrators Association. It assesses understanding of the information needed to represent a broker dealer and an investment advisor. The series 66 combines the registration of the series 63 and series 65 exams.

There are a large number of reasons why candidates seek to become series 66 licensed. Perhaps you are one of the many who are entering the financial services business for the first time. Others are more established financial service professionals. Seeking to expand their business to include both brokerage and investment advisory services. A series 66 license allows a registered representative to earn commissions and fees. Most earn fees offering managed account platforms to clients. A series 66 licensed agent may also earn commissions for executing orders.

A series 66 license  allows you to be an agent of both a broker dealer and an investment adviser. This license will allow you to offer advice to clients for a fee. The advice may be on:

• the purchase and sale of securities
• the value of securities
• the creation of financial plans.

The vast majority of these fees are charged as a percentage of assets in the client’s account. This is known as assets under management or AUM. Advisory firms may also charged as:

• 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 66 license is required.

A series 66 license  also allows you to act as a registered representative of a broker dealer.  Agents of broker dealers earn commissions for executing orders. Commissions may be earned on orders for:

• stocks
• bonds
• ETFs

The Series 66 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 66 Exam consists of 100 multiple-choice questions that must be answered and completed. The exam has a time limit of 2 hours and 30 minutes. In addition to the 100 scored questions, each series 66 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 2 hour and 30 minute time limit translates into 1.5 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 100-question practice tests. Taking series 66 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 66 Exam is 73%. Candidates must answer 73 of the 100 questions correctly.

The Series 66 Exam tests candidates’ mastery of critical knowledge.  This is the information an agent 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 exam will also contain many questions on the following:

• 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 and retirement plans
• Understanding Customers’ financial profile and investment objectives

NASAA’s official series 66 exam outline is broken down into the following areas:

1. Economic Factors and Business Information – 8 questions
2. Investment Vehicle Characteristics – 17 questions
3. Client/Customer Investment Recommendations and Strategies – 30 questions
4. Laws, Regulations, and Guidelines Including Prohibition on Unethical Business Practices – 45 questions

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 66 test takers who work at a FINRA member firm submit or update their Form U4.

The series 66 exam has the benefit of combining two tests into one. The exam contains information from both the series 63 and series 65 exams.  It presents challenges for many test takers. The information tested covers complex topics. Many of these topics are new for most people. The powers of  the state securities administrator is an area to focus on. The Uniform Securities Act are the state laws and regulations. Most people find these areas challenging. Test takers know that agents need to register in the states where they conduct business. But, many never deal with the other registration matters tested on the exam. The following are also heavily tested:

• Portfolio management
• client recommendations and strategies
• General knowledge of securities 

To pass the exam and become series 66 licensed, you must prove that you have mastered these areas. Every person who sits for the series 66 exam is coming from a different background. What one person finds easy to master, another may find very challenging. Most people find the agent and adviser registration, and  the Uniform Securities Act to be the most difficult. You should prepare for the exam by reading a textbook completely with a highlighter. Take notes and work through the more difficult topics. Some of the questions on the series 66 exam are hard but with careful preparation you will be successful. We cannot stress enough that 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. Besides obtaining the knowledge required by the exam, you must master the application. To do this take as many practice questions as you can. We recommend at least 60 – 70 hours of preparation. This should ensure you pass your series 66 exam. And ready to represent a broker dealer and a registered investment adviser.

The answer is, that while it feels like your series 66 license is indeed transferable, in actuality it is not. If you want to change firms, your series 66 registration must be terminated. Since you are registered at a FINRA member firm, the firm that you are leaving will fill out and submit Form U5 to FINRA. This terminates 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. Your series 66 license becomes active upon receiving notice from FINRA. And the states where you conduct business. Your license only becomes effective once you have received notification from each state.

You must make an investment in your professional development. Your Series 66 license empowers you to earn fees and commission . Many Series 66 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 66 exam include:

• Training materials
• Testing fees
• Registration fees

Our most comprehensive training package for the series 66 exam is $199. 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 66 exam is $177.

State registration fees vary by state and range from $50 – $250 per year.

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 66 license allows you to register as an agent for both a broker dealer and a registered investment adviser. The series 66 by itself will not allow you to conduct any business. You must also obtain the SIE and Series 7 license. The series 7 is the co-requisite for the series 66. You may take either exam first. However, you will not be allowed to conduct business until you have obtained a series 7 and series 66 license.

It is very important to choose your Series 66 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 66 textbook is the foundation of our learning system. This book has everything you need to be successful.  Our series 66 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 66 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 66 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 66 exam.

Our Series 66 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 66 training course. that we offer you a money back greenlight pass guarantee. Review our Series 66 Exam prep features here