What Is the Series 63?
The Series 63 is a securities exam and license entitling the holder to solicit orders for any type of protection in a particular state. To obtain a Series 63 license, the applicant should move an exam and possess knowledge of ethical practices and fiduciary tasks.
Key Takeaways
- Applicants to the Series 63 license should move an exam and possess knowledge of ethical practices and fiduciary tasks.
- Most U.S. states require all potential registered representatives to move the exam, which covers the principles of state securities regulations and laws prohibiting dishonest or unethical practices.
- Colorado, Florida, Louisiana, Maryland, Ohio, the District of Columbia, and Puerto Rico do not require the Series 63.
Understanding Series 63
As of Dec. 2018, the North American Securities Administrators Association (NASAA), which creates the Series 63 exam, had up-to-the-minute its questions in delicate of recent changes to the tax code. Questions in accordance with the 2018 tax code were phased out in January 2019. Questions for the Series 65 and Series 66 tests were moreover up-to-the-minute.
The Series 63 (formally known as the Uniform Securities Agent State Law Examination) is a registered exam that is required of all potential registered representatives in loads of the U.S. states. However, Colorado, District of Columbia, Florida, Louisiana, Maryland, Ohio, and Puerto Rico do not require the Series 63.
The exam used to be as soon as complicated to qualify candidates who want to artwork inside the securities industry inside a state and to advertise investment products, identical to mutual price range, variable annuities, and unit investment trusts. The exam covers the principles of state securities regulations. Each and every state has its non-public securities regulations, known as blue-sky laws, which were complicated to keep an eye on the sale of securities.
Agents should succeed in the Series 63 license, at the side of a Series 7 or Series 6 license, to advertise securities.
Prerequisites for Series 63
Exam Construction
The Financial Trade Regulatory Authority (FINRA) administers the Series 63 exam. There are 60 multiple-choice questions on the exam. The passing ranking is 72% or 43 of the 60 questions. The candidate should complete the exam right through the allotted time of 75 minutes. As of March 2020, it costs $135 to take the exam.
The North American Securities Administrators Association (NASAA) complicated the exam at the side of representatives of the securities industry. Candidates for the exam need to be aware of the Uniform Securities Act of 1956 and the NASAA Remark of Protection and Taste Regulations. The Series 63 is an entry-level exam; there are not any must haves for the exam after completing the Form U-10.
Exam Topics
The Series 63 exam covers the principles of state securities regulations and laws prohibiting dishonest or unethical practices. Some 45% of the questions pertain to regulations, 10% to administrative provisions, 20% to purchaser dialog, and 25% to ethical practices and industry tasks.
The themes on the exam include registration of various folks and securities, and fiduciary responsibility with consumer price range and securities. For added, see NASSA’s Test Specifications.
Successfully completing the Securities Trade Prerequisites Exam (SIE) is had to be eligible to take the Series 7 and Series 6 license tests, then again not the 63. To advertise securities, broker-dealers should obtain the Series 63 license along with the Series 7 or Series 6.
