Posted By: Chuck Lowenstein
Updated: July 28, 2017
Effective August 17, 2015, New Jersey joined the vast majority of states requiring passing the Uniform Securities Agent State Law Exam (Series 63 ) in order to function as an agent of a broker-dealer in the state.
On August 24, 2015, the Bureau Chief (New Jersey’s securities administrator) issued an order waiving the requirement for any individual currently registered as an agent in the state.
The effect, therefore, of the new regulation is that all new applicants for registration as agents, unless otherwise exempted, will have to take and pass the Series 63 exam.
What does this mean for Kaplan? New Jersey is one of the states where a significant percentage of agents are registered in more than one state. Those in the northern part of the state generally also register in New York, and those in the southern part generally register in Pennsylvania. Both of these states have long required the Series 63 exam, so this new ruling will only impact those who are registering solely in New Jersey.
The Kaplan Series 63 exam training program has an extremely high passing rate (in excess of 95%) and is delivered almost exclusively in an on-demand video course, meaning no capital investment in instructors or meeting rooms. From a marketing standpoint, a blurb to all New Jersey client firms, as well as those in the states where the Series 63 is not yet required but who conduct business in New Jersey (currently CO, DC, FL, LA, MD, OH, PR, and VT), would make sense.
On another note, the following statement, which is contained in the waiver order, seems strange:
c. Individuals who apply to be registered as an agent who have passed the General Securities Representative Examination–Series 7 and NASAA Uniform Combined State Law Examination–Series 66 (“Series 66”) or who passed the Series 66 prior to January 1, 2000, and have been continuously registered as an agent of a broker-dealer in any state subsequent to the Series 66 passing date.
The problem with this statement is that there was no Series 66 exam prior to January 1, 2000, since that is when it was initially introduced.