Series 63

What Is the Series 63?

The Series 63 is a securities exam and license qualifying the holder for request orders for a security in a specific state. To get a Series 63 license, the candidate must breeze through an exam and have information on ethical practices and fiduciary obligations.

Understanding Series 63

As of Dec. 2018, the North American Securities Administrators Association (NASAA), which makes the Series 63 exam, had refreshed its inquiries considering recent changes to the tax code. Questions in view of the 2018 tax code were phased out in January 2019. Inquiries for the Series 65 and Series 66 exams were likewise refreshed.

The Series 63 (formally known as the Uniform Securities Agent State Law Examination) is a registered exam that is required of all expected registered delegates in the majority of the U.S. states. In any case, Colorado, District of Columbia, Florida, Louisiana, Maryland, Ohio, and Puerto Rico don't need the Series 63.

The exam was developed to qualify candidates who need to work in the securities industry inside a state and to sell investment products, like mutual funds, variable annuities, and unit investment trusts. The exam covers the principles of state securities regulations. Each state has its own securities regulations, called blue-sky laws, which were developed to direct the sale of securities.

Agents must obtain the Series 63 license, notwithstanding a Series 7 or Series 6 license, to sell securities.

Requirements for Series 63

Exam Format

The Financial Industry Regulatory Authority (FINRA) oversees the Series 63 exam. There are 60 different decision inquiries on the exam. The passing score is 72% or 43 of the 60 inquiries. The candidate must complete the exam inside the distributed season of 75 minutes. As of March 2020, it costs $135 to take the exam.

The North American Securities Administrators Association (NASAA) developed the exam alongside agents of the securities industry. Candidates for the exam should be know all about the Uniform Securities Act of 1956 and the NASAA Statement of Policy and Model Rules. The Series 63 is a section level exam; there are no essentials for the exam subsequent to finishing the Form U-10.

Exam Topics

The Series 63 exam covers the principles of state securities regulations and rules precluding deceptive or unethical practices. Some 45% of the inquiries relate to regulations, 10% to administrative provisions, 20% to customer communication, and 25% to ethical practices and business obligations.

The subjects on the exam incorporate registration of different people and securities, and fiduciary responsibility with client funds and securities. For more, see NASSA's Test Specifications.

Effectively finishing the Securities Industry Essentials Exam (SIE) is required to be eligible to take the Series 7 and Series 6 license exams, yet all at once not the 63. To sell securities, merchant vendors must get the Series 63 license along with the Series 7 or Series 6.

Features

• Colorado, Florida, Louisiana, Maryland, Ohio, the District of Columbia, and Puerto Rico don't need the Series 63.
• Most U.S. states require all expected registered agents to breeze through the exam, which covers the principles of state securities regulations and rules precluding deceptive or unethical practices.
• Candidates to the Series 63 license must finish an exam and have information on ethical practices and fiduciary obligations.