Adviser licensing exams are an essential piece in ensuring financial professionals are knowledgeable on all regulatory and ethical guidelines.
Of course, as the exam-taker, these tests come with so many questions: How do I register? What does the exam cover? How can I prepare?
The Series 65 in particular can seem intimidating – especially to new advisers just switching professions and young professionals too. To help guide your licensing journey, we’ve rounded up the top ten most frequently asked questions about the Series 65 (and their answers). Let’s dive in!
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10 Frequently Asked Questions (and Answers) About Series 65
1. What is the Series 65 exam?
The Series 65 is a licensing exam created by the North American Securities Administrators Association (NASAA) and administered by FINRA.
Related: A look into the future: NASAA’s enforcement actions
Also known as the Uniform Investment Adviser Law Examination, the exam covers laws and ethical dilemmas pertaining to financial advisers. Once an adviser has successfully completed the 130-question test, they are one step closer to qualifying as an Investment Adviser Representative (IAR).
Note: Advisers may also need to complete the Series 7 exam or other licensing tests in order to legally sell securities and participate in trade execution.
2. Where do I complete the Series 65 exam registration?
To find a testing center and available exam dates, you’ll need to visit the registration website and click “Enroll in an Exam.”
Related: How a Prospective Investment Adviser Rep can Schedule a Series 65 Exam
From there, you’ll choose the correct licensing test (Series 65) and create a FINRA account. Follow the on-screen instructions to register for the exam and choose the most appropriate testing date and location for your needs.
3. What is the study time for the Series 65 exam?
The amount of time you spend on Series 65 prep is up to your discretion; however, it’s worth noting that the Securities Institute of America has stated:
“Reading the Series 65 textbook is absolutely essential to passing the exam…Once you have completed the textbook, take as many Series 65 practice questions as you can.”
Do keep in mind that the study materials may be worth the cost and time, especially since you will have to repay exam fees to retake the test should you fail to pass.
4. Is there a Series 65 practice exam and study guide?
NASAA does provide a comprehensive exam content outline (AKA a Series 65 study guide), which includes information on how each section of the exam is weighted. You can access the outline here.
And while there is no official practice exam released by FINRA, there are a variety of resources available online for you to purchase and prepare with. As of spring 2023, Investopedia recommends these four programs as their top choices for best test preparation material:
Of the above, Kaplan’s Series 65 Exam Prep classes were named “most comprehensive.”
5. If needed, can I retake the Series 65 exam?
If you should fail the exam, you will be required to wait 30 days before attempting again. If you fail three attempts in a row, you will be required to wait 180 days before registering again.
Please note that each subsequent attempt will require a separate registration and fee – which is $187 as of June 2023.
6. What kind of questions are on the Series 65 exam?
According to NASAA, exam takers can expect 30 Series 65 questions plus 10 pre-test questions. The exam content outline shares several key content categories, including:
- Economic factors and business information
- Investment vehicle characteristics
- Client investment recommendations and strategies
- Laws, regulations and guidelines, including prohibition on unethical business practices
7. Is the Series 65 exam hard?
Ultimately, test difficulty is relative to the exam-taker and their preparation style and effort. However, some experts label the Series 65 test as a “moderately difficult” exam.
According to Jason Vinsonhaler, COMPLY’s Director of Regulatory Research & Content, “The Series 65 examination is challenging but not insurmountable with proper preparation. The Series 65 requires diligent study to understand the concepts being tested rather than simply recalling specific facts.”
8. What do I need to do to prepare for the Series 65 Exam?
Before your exam, you should:
1. Ensure the Series 65 exam is the correct licensing exam for you based on your professional goals.
2. Invest in study material and practice exams (and use them).
3. Complete exam registration and pay the testing fee.
Related: Starting Your Own RIA Firm: What to Consider When Taking the Series 65 Exam
9. What’s the difference between the Series 65 and Series 7?
The Series 65 and Series 7 differ in a variety of ways, including that the Series 7 is produced by FINRA rather than NASAA.
Furthermore, the exams have different outcomes: Those who successfully pass the Series 65 are legally qualified to give clients investment advice and analysis, while those who pass the Series 7 are allowed to buy and sell securities.
Related: Will the DOL’s New Fiduciary Rule Require That I Take the Series 65 or Series 66?
10. What’s the difference between the Series 65 and Series 66?
The Series 66 License, also known as the “Uniform Combined State Law Examination,” is a test for those who wish to become registered as both securities agents (representatives) and IARs. It is a combination of the Series 65 and Series 63 licenses (which focuses more on state securities laws and regulations).
In other words, passing a Series 66 exam is equivalent to passing both the Series 65 and Series 63 tests.
It should be noted, both the Series 7 and the Series 66 licensing are required to become an IAR. Additionally, several states have added the Securities Industry Essentials (SIE) examination to their requirements for IAR registration when using the Series 7 and Series 66 in lieu of the Series 65.
When it comes to licensing exams, it can feel high-stakes – but with the right preparation and exam knowledge, you can successfully prepare for and pass your Series 65 licensing exam.
Need a trusted resource during the process? We can help!
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