Series 65 Registered Investment Advisor

Who Needs A Series 65 License

Also known as the Uniform Investment Adviser Law license or exam, the Series 65 is commonly held by financial advisors and some insurance agents. Once you have a Series 65 license and other required FINRA licenses, you can market and sell securities to your clients as well as give advice about what clients should purchase and their overall financial strategy.

Understanding The Series 65

Successful completion of the Series 65 exam qualifies an investment professional to function as an Investment Adviser Representative in certain states. Other FINRA-administered qualification examinations include the Series 3 National Commodities Futures , Series 7 General Securities Representative , and Series 63 Uniform Securities Agent State Law.

Financial professionals who have successfully passed the Series 65 exam may not act as investment advisers until licensed and registered in their state.

NASAA has completed the update of questions on the Series 63, 65, and 66 exams in light of the 2018 changes to the tax code. Tax-related questions appearing on the exams starting in Jan. 2019 reflect the tax code changes. To sit for the Series 65 exam, a candidate does not require sponsorship by a member firm.

Investment Advisor Representative Exam And Registration Requirements

Note: RIA in a Box LLC is not a law firm, investment advisory firm, or a CPA firm. RIA in a Box LLC does not provide legal advice or opinions to any party or client. You should always consult your relevant regulatory authorities as this information should not be relied upon as currently accurate. This information is provided for educational purposes only and is not an exhaustive list of regulatory requirements.

Read Also: How To Invest In Stocks With Cash App

The Following Are Frequently Asked Questions About The Series 65 Examination

The answers to these questions are general in nature and do not include or account for all of the exceptions by or variances among state securities regulators. RIA Compliance Consultants recommends that a Series 65 examination candidate review the specific investment adviser representative requirements of the securities regulator of his or her home state since the answers to certain questions below may depend upon the securities laws and regulations of the particular state.

• Who needs to take the Series 65 examination?

• In order for an individual to register and serve as an investment advisor representative of a registered investment advisor firm , most state securities regulators require the individual to successfully complete the Uniform Investment Adviser Law Examination . As discussed below, state securities regulators have certain exceptions or alternatives to the general requirement that a prospective investment advisor representative has successfully completed the Series 65 examination prior to submitting his or her registration application . Some state securities regulators also accept other professional designations in addition to those listed above as an alternative to the Series 65.

Who Needs A Series 63 License

Securities industry professionals seeking to transact securities business with residents in most states as a broker-dealer agent are required to pass the Uniform Securities Agent State Law Exam, more commonly known as the Series 63 exam.

Individuals living or working only in CO, D.C., FL, LA, MD, or Puerto Rico are not required by those jurisdictions to obtain a Series 63 license, but most broker-dealer firms may still require these agents to obtain a Series 63 license in case they have customers in any other states.

The FINRA SIE and either a Series 6 or Series 7 exam are corequisites that must be successfully completed in addition to the Series 63 exam before a candidate can apply to register with a state as a broker-dealer agent.

Don’t Miss: Mortgage Rates For Investment Property In California

What Is The Passing Score For The Series 65 Exam

You must answer at least 72% of the Series 65 exam questions correct to pass. This means that you have to answer at least 94 questions, although they can be from any of the sections. The Series 65 exam content outline covers all of the testable information. A test prep course can help you maximize your chances of exam success on the first attempt.

Series 7 Exam Eligibility

Eligibility for the Series 7 exam requires that you get sponsorship from a member firm of FINRA or an authorized SRO.

Your sponsoring firm is mandated to file a Form U4 on your behalf to enable you to register for the Series 7 exam.

Securities firms and registered brokers are regulated and monitored by FINRA, ensuring that anyone who sells securities products is qualified and tested.

Recommended Reading: Dave Ramsey Recommended Investment Advisors

Rias And The Form Adv

The next step in the registration process is to create an account with the Investment Adviser Registration Depository , which is managed by FINRA on behalf of the SEC and states.

Once the account is open, FINRA will supply the advisor or firm with a CRD number and account ID information. Then the RIA can file Form ADV and the U4 forms with either the SEC or states.

The Form ADV is the official application document used by the government to apply to become an RIA. It has multiple sections that all must be completed, although only the first section is electronically submitted to the SEC or state government for approval. Part II of the form serves as a disclosure document that is distributed to all clients. It must clearly list all services that are provided to clients, as well as a breakdown of compensation and fees, possible conflicts of interest, the firm’s code of ethics, the advisor’s financial condition, educational background and credentials, and any affiliated parties.

This form must also be uploaded electronically into the IARD and given to all new and prospective clients. Preparing and submitting these forms typically takes most firms a few weeks, and then the SEC must respond to the application within 45 days.

Most states require RIAs to have a net worth of at least $35,000 if they have actual custody of client funds and $10,000 if they do not RIAs who fail to meet this requirement must post a surety bond.

What Is The Difference Between The Series 63 65 And 66

If you are new to the securities industry, you are most likely confused about the various licensing examination requirements. The securities industry is regulated at the federal level, but there are also state securities requirements that must be met. The Series 63, Series 65, and Series 66 licenses are required by securities administrators in most states. To obtain each of these licenses, an applicant must pass an exam and apply for state registration. I will try to clear up some of the confusion by explaining who is required to pass these various state securities exams and why.

Also Check: Is It Worth To Invest In Cryptocurrency

What Can I Sell With A Series 65

The Series 65 exam covers a variety of investment vehicles and allows license holders to charge a fee for their financial advice and services including securities-based products. The Series 65 was designed to make sure that professionals offering financial advice were licensed to do so and knew about the products and regulations.

Keep in mind that you must have another FINRA license to be able to market and sell securities. The Series 65 alone does not allow you to sell securities.

Who Needs The Series 65

Many financial firms require registered representatives to provide investment advice. Series 65 test candidates’ comprehension of financial concepts and qualifies them to give investment advice and charge a fee for doing so. Most state securities regulators have set the Series 65 as the minimum requirement to become an investment advisor representative .

Registered investment advisor firms require these representatives to interact with current and potential clients. So if you are currently looking for a career in a financial advisory position, Series 65 could be an asset to your résumé. If you don’t have it yet, it could be a requirement that you get it once you get hired. The test is less difficult than the more comprehensive designations and certificates such as the certified financial planner or chartered investment counselor .

Read Also: Buying Investment Property Out Of State

How Much Does A Series 65 Exam Prep Course Cost

The cost of Series 65 exam prep courses can range from $160 to $350, depending on a person’s study needs and preferences. For self-starters who don’t require many resources, a self-study manual can be purchased for as little as $60. Students who prefer a more guided curriculum, online videos, or virtual learning instruction can find resources for $200 to $300 or more. For many students, the cost of a course that includes numerous practice exams that track their progress is worth the extra investment.

Unlike the Series 7 license, which many broker-dealers will sponsor, the Series 65 license is typically obtained by individuals on their own. So candidates should be prepared to cover the entire cost. If you are concerned about using your own money, it’s best to go with a provider that offers a money-back guarantee.

What Is Series 65

exam is also known as the Uniform Investment Adviser

This exam study outline was developed by the North American Securities Administrators Association (

has structured the exam to cover relevant topics necessary for financial professionalsinvestment advice to clients.

The exam is a closed-book test to ascertain candidates grasp of knowledge necessary to perform excellently as investment advisers.

The score of each test section and the exams overall score is displayed to the exam candidate.

This examination consists of 130 multiple-choice questions with 10 pretest questions randomly distributed among all 130 questions.

The time allotted for the exam is 3 hours .

The required passing rate is 72% candidates must answer 94 questions out of 130 correctly to pass the exam.

It is interesting to note that the Series 65 exam does not have a corequisite exam.

Series 65 license covers the rules and regulations of registered investment advisors

Recommended Reading: No Closing Cost Refinance Investment Property

Relevance Of Securities Licenses

Securities licenses are essential as well as mandatory for anyone who wants to market and sell investments.

The type of investments financial professionals want to sell, the method of getting compensation, and the scope of service to be provided, will determine the specific type of license to be obtained.

Series 7 was established for the purpose of having a standard level of competency and ethics for registered representatives in the securities industry.

Registered Representatives

A registered representative is a financial professional that works for a financial firm to help transact business on behalf of clients.

Financial advisors, portfolio managers, brokers are all designations that registered representatives can work as.

RRs mandate is to make sure that their clients interest for which they transact business is always paramount.

It is this transacting of business that makes the services of RRs transaction-based.

Registered representatives must be duly licensed in order to sell securities legally on behalf of clients.

Passing both Series 7 and 63 exams is very essential to get licensed as a registered representative of a firm sponsoring you.

FINRA and SEC are responsible for regulating and administering the Series 7 and Series 63 test.

Series 7 and Series 63 enable you as a registered representative to transact different types of businesses within the permission of the license held.

What Is a Registered Investment Advisor ?

Registered Investment Advisor

Introduction To The Series 65 Exam

The Series 65, officially known as the Uniform Investment Adviser Law Exam, is designed to test an individual’s knowledge and ability to advise clients in the area of investing and to discuss general financial concepts. If you have a basic understanding of finance, economics and investing, you will have a huge head start, but various laws and regulations are also covered, making studying much harder.

You May Like: St Jude Invest In Hope

The Fourth Content Area

The final section of the test asks 40 questions regarding laws, regulations, guidelines and prohibition of unethical business practices.

• Be aware of the State and Federal Laws that regulate Investment Advisors and the post-registration and registration requirements.
• The regulation of Broker/Dealers, agents, securities and the issuers
• Remedies and Administrative Provisions, actions, penalties and liabilities
• Ethical practices and fiduciary obligations when communicating with clients and prospects
• Contracts, guarantees, fees, commissions, performance based fees, disclosure of compensation, custody, discretion, trading authorization, standards and suitability
• Conflicts of interest, excessive trading, loans to and from clients, sharing profits, confidentiality, insider trading, selling away and market manipulation.

As you can see, the Series 65 Examination covers a very broad, extensive, amount of information. It is a lot of information to retain, making it necessary to implement plenty of study time with your Mometrix Practice Test and Flash cards. This is an opportunity to excel in your career and promote your knowledge and skills to your peers. A client will feel more comfortable trusting you with their finances knowing that you have succeeded in passing the Series 65 Exam. Start studying early and get the best score possible the first time.

Series 65 Uniform Investment Adviser Law Exam

The Series 65 Exam is a challenging test that test the minimum requirements for an Investment Advisor to perform the functions of the job. This three hour test, which includes one hundred and forty questions , is designed to validate and assure that each advisor can perform all the minimum basic requirements and functions of an Investment Advisor. It is extremely critical to have working knowledge and experience of the terms and definitions associated with the questions on the Series 65 Exam. Due to the cost, detail and amount of information covered in the test, it is important to study and prepare for the Series 65 as early and as much as possible. The Series 65 Study Guide provided by Mometrix, as well as the Series 65 Flashcards, are specifically designed to help you obtain the very best test score possible. The passing score is a 72, which means you need to get 94 questions correct.

Recommended Reading: Fisher Investments 15 Minute Retirement Plan

Getting Your Series 65 License

Once you are ready to begin or advance your career in the financial services industry, getting your securities licenses in an important step. The Series 65 license will allow you to provide valuable financial advice about securities-based products to your clients.

Information on this page has been gathered by a multitude of sources and was most recently updated on October 2020.

Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your state’s authority on insurance.

When readers purchase services discussed on our site, we often earn affiliate commissions that support our work. Learn More

Free Ebook: Launching Your Securities Career

Wouldnt it be great if you could sit down with a room full of successful securities professionals and ask them for career advice? We asked several accomplished securities pros what they wish they knew before they earned their license and started their career, and what they thought all aspiring securities professionals should know. We put all of their advice into a value-packed eBook.

You May Like: What Is A Family Office Investing

Benefits Of The Series 65 Exam

According to NASAA, the Uniform Investment Adviser Law Examination Series 65 exam benefits both the securities industry and state regulators alike by creating uniformity.

This exam helps the investing public to have a higher degree of protection via enhanced and standardized qualifications of financial professionals.

Passing the Series 65 exam qualifies you as an Investment Advisor Representative .

Is The Series 65 Or Series 66 Harder

The Series 66 license allows licensees to perform all of the functions covered under the Series 63 and Series 65 exams. At 100 scored questions and $165 per attempt, the Series 66 test is shorter and less expensive than the Series 65. The biggest factor to consider when registering for a securities exam is what your career path may look like after becoming licensed.

If you want to conduct transactions as well as offer financial advice, getting the Series 66 license that covers both can save you time and money. If you only need to perform one of these functions for your position, you may need to get the Series 63 or Series 65 instead.

Tip:

You May Like: Step By Step Guide To Investing

Series 65 Exam Content

NASAA provides updated information on the exam’s content on its website. The exam is structured as follows:

• Economic Factors and Business Information : Topics include monetary and fiscal policy, economic indicators, financial reporting, quantitative methods, and basic risk concepts.
• Investment Vehicle Characteristics : Topics include cash and cash equivalents, fixed income securities, methods of fixed income valuation, equities and methods used in equity valuation, pooled investments, derivative securities, and insurance-based products.
• Client Investment Recommendations and Strategies : Topics include individuals business entities and trusts client profiles capital market theory portfolio management styles, strategies and techniques tax considerations retirement planning ERISA issues special types of accounts trading securities exchanges and markets and performance measurement.
• Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices : Topics include state and federal securities acts rules and regulations for investment advisers, investment adviser representatives, broker-dealers, and agents ethical practices and fiduciary obligations, including communications with clients, compensation, client funds, and conflicts of interest.