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Series 66 Exam

Series 66 Exam
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What Is the Series 66?

The Series 66 is an exam and license that is intended to qualify people as investment advisor delegates or securities agents. The Series 66, otherwise called the Uniform Combined State Law Examination, covers subjects pertinent to giving investment counsel and affecting securities transactions for clients.

As of December 2018, the North American Securities Administrators Association (NASAA), which makes the Series 66 exam, had refreshed its inquiries due to recent changes in the tax code. Questions utilizing the 2018 tax code were carried out in January 2019.

Understanding the Series 66

The Series 66 certification was developed by the NASAA based on demands from the industry. The exam is administered by the Financial Industry Regulatory Authority (FINRA), which is additionally responsible for processing and scattering test results. FINRA's Series 7 exam is a co-essential of the Series 66, and that means it should be effectively completed alongside the Series 66 before a candidate might apply to register in a state.

There is no order where the Series 7 and Series 66 must be taken. People who have passed the Series 7 might take the Series 66 to try not to need to take the more troublesome Series 65 exam.

Series 66 Exam Structure

The Series 66 examination contents incorporate 100 various decision questions that are scored and 10 pretest questions that are not scored. Candidates make some maximum memories of 150 minutes to complete the examination.

To get a passing score, a candidate must accurately answer 73 of the 100 inquiries that are scored. The exam administrator gives electronic adding machines to candidates to utilize, and these are the main mini-computers permitted in the exam room. A dry-delete marker and whiteboard are given.

Cruel punishments are forced on anybody discovered cheating or endeavoring to cheat on the Series 66 exam.

No study or reference materials of any sort are permitted in the examination room, and there are cruel punishments for anybody found cheating or endeavoring to cheat. A singular's employer can register a candidate for the exam by filing either a Form U4 or Form U-10 and paying the $165 examination fee. FINRA's Series 66 Informational Page has extra subtleties.

Series 66 Exam Content

The NASAA refreshes information on the exam's substance and posts it online. As of March 2019, the exam questions are allocated as follows:

  • Economic Factors and Business Information (5%): This section remembers five inquiries for financial reporting (like financial ratios, SEC filings, and annual reports), quantitative methods (like internal rate of return and net present value), and types of risk, (for example, market, interest rate, inflation, political, liquidity, and different risks).
  • Investment Vehicle Characteristics (20%): The 20 inquiries in this section incorporate, however are not limited to: methods used to value fixed-income securities, types and attributes of derivative securities, alternative investments, and insurance-based products.
  • Client/Customer Investment Recommendations and Strategies (30%): The 30 inquiries in this section incorporate, yet are not limited to: types of clients (counting people, businesses, and trusts and estates), client profiling (counting financial objectives, current financial status, and risk tolerance), capital market theory, portfolio management strategies, tax contemplations, retirement planning, trading accounts, and performance measurement.
  • Laws, Regulations, and Guidelines, Including Prohibition on Unethical Business Practices (45%): This section remembers 45 inquiries for state and federal securities acts alongside related rules and regulations, ethical practices, and fiduciary obligations.

Features

  • People who need to become investment advisor delegates or securities agents must take both the Series 66 and Series 7 exams.
  • The Series 66 exam has 100 different decision questions that are scored, and a candidate must accurately respond to 73 of those inquiries to pass.
  • The complete exam covers subjects like economic factors, the attributes of investment vehicles, client/client investment recommendation strategies, and laws and regulations.