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How to Get Your Series 66 License

How to Get Your Series 66 License

Posted By: Kaplan Financial Education
Updated: November 1, 2018 

 

The Series 66 license, known as the Uniform Combined State Law Examination, is a North American Securities Administrators Association (NASAA) exam that is administered by FINRA. It is required for individuals acting as or soliciting for the service of investment advisors or soliciting the purchase or sale of securities within a state. Getting the Series 66 license fulfills the requirements of both the Series 63 and Series 65 licenses.

In order to take the Series 66 exam, you must be a Series 7 license holder, or be taking the Series 7 license exam concurrently with the Series 66 license exam. (If you are earning your Series 7, you will also have to pass the new SIE exam.) If you are not planning on getting the Series 7 license, then you must take the Series 65 license exam instead.

Obtaining the Series 66 license is important for representatives who provide advice on ERISA-regulated retirement accounts. 

How to Get the Series 66 License

Unlike many FINRA Series exams, the Series 66 exam does not require an individual to be sponsored by a member firm. If you are not Form U4 registered or affiliated with a firm through FINRA’s Web CRD system, you should use the Form U10 to request and pay for the Series 66 exam. There is an exam fee that is commonly covered by the sponsoring firm if you are Form U4 registered, or by the individual if you are not sponsored.

The Series 66 exam covers four topic areas:

  • Economic Factors and Business Information
  • Investment Vehicle Characteristics
  • Client Investment Recommendations and Strategies
  • Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices

The Series 66 exam contains 100 multiple-choice questions that must be completed in 150 minutes. You must get a 73/100 or higher to pass.

In July 2016, NASAA added new content to the exam to better reflect the skills and knowledge required for dually registered agents of broker dealers and investment adviser representatives. Some content areas were renamed, combined, or reorganized. For example, the alternative investments area was expanded to include additional investment types and given changing market conditions. The content was also expanded regarding client type, ownership, and estate planning techniques. A content area was added to incorporate new topics such as social media, cybersecurity and data protection, anti-money laundering, and custody obligations.

While the length of the exam did not change, the passing score did change to 73%. The weighting of the topics and number of questions in each topic area were also updated to better reflect the importance of certain knowledge and skills. Check NASAA’s website for the most up-to-date content outline for the Series 66 exam.

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Are you ready to enroll in Series 66 licensing exam prep? Check out our website to learn more about our live and online study options, and to purchase a Series 66 exam prep package.