What Is the Series 66?
Series 66 — the NASAA Uniform Mixed State Law Examination — is an exam and license that is meant to qualify folks as investment marketing consultant representatives (IARs) or securities agents. The Series 66 covers topics associated with providing investment advice and effecting securities transactions for customers. Once approved, IARs can legally conduct financial advising and wealth keep an eye on duties.
The Series 66 exam is complex by means of the North American Securities Administrators Association (NASAA), in conjunction with the Series 63 and Series 65 exams. It is administered by means of the Financial Trade Regulatory Authority (FINRA).
Key Takeaways
- The Series 66 is a licensed licensing exam for investment marketing consultant representatives (IARs).
- Those who need to become IARs or securities agents should move each and every the Series 66 and Series 7 exams.
- The Series 66 exam has 100 multiple-choice questions, with a passing rating of 73%.
- The exam covers topics very similar to monetary components, investment automobiles, consumer/purchaser investment recommendation strategies, and rules & rules.
- The Series 66 is very similar to taking each and every the Series 63 and Series 65 exams.
Figuring out the Series 66
The Series 66 certification was once as soon as complex by means of the NASAA based on requests from the industry. The exam is administered by means of the Financial Trade Regulatory Authority (FINRA), which is also in control of processing and disseminating check out results. FINRA’s Series 7 exam is a co-requisite of the Series 66, on account of this it should be successfully completed in conjunction with the Series 66 previous to a candidate may apply to check in in a state.
The Series 7 should be successfully completed previous to taking the Series 66. Individuals who have passed the Series 7 may take the Series 66 as a way to avoid having to take the longer and possibly more difficult Series 65 exam.
Series 66 Exam and Building
The Series 66 examination contents include 100 multiple-choice questions which could be scored and 10 pretest questions that aren’t scored. Candidates have a maximum time of 150 minutes (2.5 hours) to complete the examination.
To obtain a passing rating, a candidate should correctly answer 73 of the 100 questions which could be scored (73%). The exam administrator provides virtual calculators for candidates to use, and the ones are the only calculators allowed inside the exam room. A dry-erase marker and whiteboard are provided.
No learn about or reference materials of any kind are authorized inside the examination room, and there are harsh penalties for anyone caught cheating or attempting to cheat. An individual’s employer can check in a candidate for the exam by means of filing each a Form U4 or Form U-10 and paying the $177 examination value. FINRA’s Series 66 Informational Internet web page has additional details.
As of October 21, 2022 you’ll have to take the Series 66 in-person at a licensed testing middle. The Series 66 qualification exam is most straightforward available online for candidates who provide medical proof that they may be able to’t take exams in testing amenities, on account of a disability or other qualifying issue.
Harsh penalties are imposed on anyone caught cheating or attempting to cheat on the Series 66 exam.
Series 66 Exam Content material subject matter
The NASAA updates wisdom on the exam’s content material subject matter and posts it online. As of October 2022, the exam questions are allocated as follows:
- Monetary Parts and Trade Information (5%): This segment accommodates 5 questions on financial reporting (very similar to financial ratios, SEC filings, and annual tales), quantitative methods (very similar to within value of return and web supply value), and sorts of chance (very similar to market, interest rate, inflation, political, liquidity, and other risks).
- Investment Automotive Characteristics (20%): The 20 questions in this segment include, on the other hand aren’t limited to: methods used to worth fixed-income securities, types and characteristics of derivative securities, variety investments, and insurance-based products.
- Consumer/Purchaser Investment Ideas and Strategies (30%): The 30 questions in this segment include, on the other hand aren’t limited to: sorts of customers (along with folks, firms, and trusts and estates), consumer profiling (along with financial goals, provide financial status, and chance tolerance), capital market concept, portfolio keep an eye on strategies, tax problems, retirement planning, purchasing and promoting accounts, and serve as size.
- Regulations, Regulations, and Tips, At the side of Prohibition on Unethical Trade Practices (45%): This segment accommodates 45 questions on state and federal securities acts in conjunction with related rules and rules, ethical practices, and fiduciary obligations.
Series 66 vs Series 63 & Series 65
- The Series 66 essentially combines material found in each and every the Series 63 and 65. Alternatively, you’ll have to have passed the Series 7 as a co-requisite for the Series 66, which is not sought after for the 63 or 65.
- The Series 63 by itself provides state-level authority to transact in securities on behalf of customers.
- The Series 65 by itself provides state-level authority to supply financial advice and prepare consumer belongings.
What Does the Series 66 Allow You to Do?
Passing the Series 66 licenses financial professionals to carry out artwork as an IAR or securities agents with state-level authority. With the Series 66 license, financial professionals can legally act inside the capacity of investment advisers or wealth/asset managers.
Is the Series 65 Harder than the Series 66?
The Series 65 is another IAR licensing credential presented by means of the NASAA. The Series 66 exam is rather new. It was once as soon as created by means of NASAA in step with requests from broker-dealers and other financial services firms. It is essentially a mixture of Series 63 and Series 65, on the other hand since a co-requisite for taking the exam is successful completion of the Series 7 exam, it does not include the product, analysis, and method questions which could be a large part of the Series 65.
While the move/fail fees for the ones exams aren’t publicly available, many imagine the Series 66 exam more uncomplicated than the Series 65 because it has 30 fewer questions and does not include topics from the Series 7.
How Tricky Is the Series 66 Exam?
The Series 66 is hard as it covers a big breadth of detailed material. The dependable move fees for the Series 66 exam aren’t officially published; however, check out prep techniques estimate the move value to be spherical 65-70% of check out takers. While you fail the exam, you’ll have to wait at least 30 days previous to attempting it over again.
How So much Does the Series 66 Value?
Taking the Series 66 Exam costs $177 as of 2022. While you artwork for a financial corporate, they’ll duvet the exam price in your behalf.
The Bottom Line
Those who need to become professional investment advisors or money managers need to move each and every the FINRA Series 7 and NASAA Series 66 exams (despite the fact that you are able to moreover take each and every the Series 63 and Series 65 as well in lieu of the 66). The Series 66 combines material from each and every the Series 63 and Series 65 exams, in a 100-question numerous desire construction. Check out takers have 150 minutes and should rating 73% or upper to move. While you move, you are able to legally transact in securities and offers securities-related advice in all states.
