Series 7 and 66

Series 7 and 66 License Frequently asked questions / FAQs

1) Why should I get a series 7 and 66 license ?

Most full service financial services firms operate as both a broker dealer and as investment advisers. As such, people who join these firms or who are being promoted within these firms are required to obtain the series 7 and 66 licenses. If you are joining a financial firm for the first time, you will have a number of tasks to complete as you embark on a new career. The most significant task will be for a new associated person to obtain their series 7 and 66 licenses. Many people who have been with the firm for a while, find as they changes roles within the firm, that the new position now requires the series 7 and 66 license. You will be notified by your firm’s compliance department, home office, HR or through your manager as to the time frame for taking the series 7 and 66 exams. Most of the major broker dealers require their agents to obtain the series 7 and 66 licenses as a condition of employment.

2) What will I be able to do with a series 7 and 66 license?

A series 7 and 66 license will allow you to represent both a broker dealer and an investment adviser. The series 7 license will allow you to earn commissions for executing orders for the purchase and sale of securities. Passing the series 7 exam allows an agent to represent the broker dealer and to conduct business in in all general securities products, including, stock, bonds, options, rights, warrants ETFs and in both open and closed end investment company products ( mutual funds ). The series 66 license combines the series 63 and series 65 license and allows a person to register as an agent of a broker dealer and as an agent of an investment adviser. After passing the series 66 licensing exam an agent may earn fees for providing advice to clients as a representative of an investment advisory firm. Most of these fees come in the form of a percentage of assets under management.

3) How hard is it to get a series 7 and 66 license ?

Passing both the series 7 and 66 licensing exams is not an easy task. In order to be successful you must take your exam preparation seriously. Passing the series 7 and 66 licensing exams is a very large accomplishment and it is not to be taken lightly. Your firm has required to pass not one, but two tests. This takes focus and dedication to the exam preparation process. We strongly recommend that you focus on the series 7 exam first. Most people find the series 7 exam far more challenging than the series 66 exam. The series 7 will require far more time to master the concepts. It is never a good idea to try to take the series 7 and 66 licensing exams on the same day. You should not even open the book for the series 66 until you have passed the series 7 exam. History has shown that trying to take both exams on the same day, rarely, if ever, results in a passing either exam. Once you have passed your series 7 exam you can enjoy your victory by taking a few days off. Do not take a long time between tests. You are in “study mode” and you must get to work on the series 66 while your mind can focus on the task at hand . There is no way you will pass either test by just taking practice questions. You must read a professional, college quality textbook There are no shortcuts and students should make studying a priority. We recommend at least 80- 100 hours of preparation to ensure you pass your series 7 exam and 40-50 hours for the series 66 exam.

4) Are my series 7 and 66 licenses transferable ?

Changing firms in the financial services business is a process and your licenses may not simply be transferred from one firm to another. While the process requires paperwork to be filed, once the process is complete your series 7 and 66 licenses will become active at your new firm. When a series 7 and 66 licensed agent wishes to change firms, their licenses must be terminated by their current employer. The firm that the agent is leaving must fill out and submit a uniform notice of termination, known as a Form U5, to FINRA. This will terminate their employment and registrations with that firm. Once the agent arrives at the new firm, the agent will have to begin a new registration at that firm. The new FINRA member will be required to have the agent fill out and submit a new Form U4. Your new firm will then sign and submit the new U4 to FINRA. This will process will begin the agent’s registration with the new firm. Your series 7 and 66 licenses will become only upon receiving notice from both FINRA and the states where the agent conducts business. This process usually only take several days for most agents. The firm and the agent will be notified through the central registration depository or CRD when their license has become effective at the new firm.

5) How much does it cost to get a series 7 and 66 license ?

Becoming series 7 & 66 licensed will require many people to contribute not only their time, but also to pick up some of the costs associated with the process. Many employers will pick up or reimburse candidates for the cost of materials and the testing fees. However, many more are required to pay for the costs out of pocket. After all, these will be your licenses and will be part of your professional credentials. Passing the series 7 & 66 exams will be a big achievement and will open many doors for you throughout your career. Many people opt to purchase additional test questions from multiple providers to ensure that that have seen a large number of questions. For most people, even those who pay for all of the costs, quality materials and testing fees usually cost a few hundred dollars.

6) What are the continuing education requirements once I have a series 7 and 66 license ?

Being a financial services professional will require ongoing continuing education. Professionals who are licensed as series 7 & 66 agents will be required to meet FINRA’s continuing educational requirements for the series 7. This continuing education requirement has two parts, a firm element and a regulatory element . Each year every FINRA member firm is required to administer the firm element continuing education program. Based on your duties at your firm and the types of products offered, your firm will have you attend a seminar, webinar or take an online course to satisfy the firm element continuing education requirement. It is the agent’s responsibility to complete the regulatory continuing education requirement which is administered by FINRA. Having obtained a series 7 license you will be required to complete FINRA’s regulatory continuing education requirement. The timing as to when you must complete the continuing education course will be based on your date of association with a FINRA member. The date of association for most people will be the date you passed your exam. You will be required to complete the S101 continuing education course on the second anniversary of passing your series 7 exam and every three years thereafter. The S101 course may be completed at an approved facility or on FINRA’s continuing education portal. Your series 66 license does not have any continuing education requirements at this time.

7) Will I need to obtain any other license to be fully registered ?

Once you have become series 7 and series 66 licensed You are fully licensed to represent a broker dealer in the purchase and sale of all general securities. In addition, your series 66 license allows you to represent an investment adviser who provides advice for a fee. Should you wish to conduct business in variable contracts, such as variable annuities and variable life insurance, you must also obtain a life and health insurance license in your home state.

Once you have become series 7 and series 66 licensed You are fully licensed to represent a broker dealer in the purchase and sale of all general securities. In addition, your series 66 license allows you to represent an investment adviser who provides advice for a fee. Should you wish to conduct business in variable contracts, such as variable annuities and variable life insurance, you must also obtain a life and health insurance license in your home state.

We hope that this answers many of your frequently asked questions about the series 7 and 66 licenses. If you have any additional questions please call or email us.

Good luck on your exam.

The Securities Institute of America, Inc.