Table of Contents
- What Is Series 66?
- Key Takeaways
- Understanding the Series 66
- Series 66 Exam and Structure
- Series 66 Exam Content
- Series 66 vs. Series 63 and Series 65
- What Does the Series 66 Allow You to Do?
- Is the Series 65 Harder Than the Series 66?
- How Difficult Is the Series 66 Exam?
- How Much Does the Series 66 Cost?
- The Bottom Line
What Is Series 66?
Let me explain what the Series 66 is. It's the NASAA Uniform Combined State Law Examination, an exam and license designed to qualify you as an investment advisor representative (IAR) or securities agent. This covers the essentials of providing investment advice and handling securities transactions for clients. Once you get licensed, you can legally perform financial advising and wealth management tasks.
NASAA develops the Series 66, along with the Series 63 and Series 65, and FINRA administers it.
Key Takeaways
Here's what you need to know right away. The Series 66 is a professional licensing exam for IARs. If you want to become an IAR or securities agent, you must pass both the Series 66 and Series 7 exams. The exam has 100 multiple-choice questions, and you need a 73% to pass. It covers economic factors, investment vehicles, strategies for client recommendations, and laws and regulations. Essentially, the Series 66 is like taking both the Series 63 and Series 65 combined.
Understanding the Series 66
NASAA created the Series 66 based on industry requests. FINRA administers the exam and handles processing and results. You need to pass the Series 7 as a co-requisite before applying for state registration. Complete the Series 7 first, then the Series 66. If you've passed the Series 7, taking the Series 66 lets you skip the longer Series 65, which might be tougher.
Series 66 Exam and Structure
The exam includes 100 scored multiple-choice questions and 10 unscored pretest ones. You have 150 minutes to finish it. To pass, answer 73 of the 100 scored questions correctly. You'll get an electronic calculator, a dry-erase marker, and a whiteboard—nothing else is allowed. No study materials in the room, and cheating leads to harsh penalties.
Your employer can register you via Form U4 or online, paying the $177 fee. Check FINRA's Series 66 page for more. As of April 1, 2022, you take it in person at a testing center, unless you have medical proof for an online option due to disability.
Series 66 Exam Content
NASAA updates the content online. As of October 2022, questions break down like this: 8% on economic factors and business information, covering financial reporting, quantitative methods, and risks like market or inflation. Then 17% on investment vehicle characteristics, including valuing fixed-income securities, derivatives, alternatives, and insurance products.
The biggest part, 30%, is on client investment recommendations and strategies, dealing with client types, profiling, portfolio management, taxes, retirement, trading, and performance. Finally, 45% focuses on laws, regulations, ethical practices, and fiduciary obligations from state and federal acts.
Series 66 vs. Series 63 and Series 65
The Series 66 combines material from the Series 63 and 65, but you need the Series 7 as a co-requisite—unlike the others. The Series 63 alone gives state authority for securities transactions. The Series 65 alone allows financial advice and asset management at the state level.
What Does the Series 66 Allow You to Do?
Passing it licenses you as an IAR or securities agent with state authority. You can then act as an investment advisor or wealth manager legally.
Is the Series 65 Harder Than the Series 66?
The Series 65 is another NASAA IAR license. The Series 66 is newer, created for broker-dealers, combining 63 and 65 but requiring Series 7, so it skips some product and strategy questions from the 65. It has 30 fewer questions, and many find it easier than the Series 65, though pass rates aren't public.
How Difficult Is the Series 66 Exam?
It's challenging because it covers a lot of detailed material. Pass rates aren't official, but estimates are 65% to 70%. If you fail, wait 30 days to retake.
How Much Does the Series 66 Cost?
The exam costs $177 as of 2024. Your firm might pay if you work for one.
The Bottom Line
If you aim to be a professional investment advisor or money manager, pass the Series 7 and Series 66 (or alternatively, 63 and 65). The Series 66 is a 100-question exam in multiple-choice format, with 150 minutes to score 73% or better. Passing lets you transact securities and give advice legally across states.
Other articles for you
Futures trading involves contracts to buy or sell assets at a predetermined future date and price, used for speculation or hedging.
A discrete probability distribution describes the probabilities of countable outcomes in statistical analysis.
Tight monetary policy is a central bank's strategy to slow overheated economic growth and curb inflation by raising interest rates and reducing money supply.
The Help-Wanted Index by The Conference Board measures job market efficiency and employment demand through newspaper classified ads.
The adjusted closing price modifies a stock's closing price to account for corporate actions like splits and dividends for accurate historical analysis.
GAFAM refers to the five major U.S
The Uniform Gifts to Minors Act (UGMA) allows adults to transfer financial assets to minors via custodial accounts managed until the child reaches adulthood.
Government-sponsored enterprises (GSEs) are quasi-governmental entities created to boost credit flow in specific U.S
Buy to cover is a trading order used to close a short position by repurchasing borrowed shares.
Industrial revenue bonds are municipal securities issued by governments to finance private company projects, offering tax-exempt benefits and repaid from project revenues.