The Series 65 exam, also known as the Uniform Investment Adviser Law Examination, is a crucial step for financial professionals aiming to become Investment Adviser Representatives (IAR). This blog post covers the most frequently asked questions about the Series 65 exam and explores waiver options for those holding certain professional designations.
Series 65 Exam FAQs
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
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.”
Online testing options are available only for those who require certain accommodations.
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. How long is the Series 65 exam?
The Series 65 exam is 180 minutes (3 hours) long and consists of 130 multiple-choice questions. You must answer at least 92 of those questions correctly to pass the exam.
7. What topics are covered in 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
8. What do I need to do to prepare for the Series 65 Exam?
Before your exam, you should:
- Ensure the Series 65 exam is the correct licensing exam for you based on your professional goals.
- Invest in study material and practice exams (and use them).
- Complete exam registration and pay the testing fee.
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.
11. What is the Exam Validity Extension Program and who does it apply to?
NASAA’s Exam Validity Extension Program (EVEP) provides an opportunity for registered representatives and investment adviser representatives to extend their NASAA qualification exams (Series 63, 65 and 66*) for a period up to five years by opting in to the program(s), paying an annual fee and maintaining certain continuing education requirements.
Series 65 Exam Requirement Waiver Options
In lieu of the Series 65 an individual who currently holds a qualifying professional designation in current and good standing can request a waiver of the required exam. In addition, if an individual has also held a combination of the Series 7 and Series 66 licenses within the last 24 months, they can also generally qualify as an IAR without taking the Series 65 exam.
The five professional designations that generally allow a prospective investment adviser representative to receive a Series 65 exam waiver are:
Chartered Financial Analyst (CFA®):
The CFA charter is a globally-recognized professional designation offered by the CFA Institute. It is considered the gold standard in the field of investment analysis and requires passing three difficult exams, having a bachelor’s degree, and at least 4,000 hours of relevant professional experience.
Certified Financial Planner (CFP®):
The CFP designation is awarded by the CFP Board of Standards and is considered the gold standard for financial planners. It involves rigorous certification and is often pursued by professionals who provide comprehensive financial planning services.
Chartered Financial Consultant (ChFC®):
The ChFC designation is awarded to individuals who complete a comprehensive course covering financial education and practical experience. It includes topics such as estate planning and employee benefits planning.
Chartered Investment Counselor (CIC):
The CIC designation is awarded to insurance professionals who complete a series of courses and exams covering various aspects of insurance and risk management. There are several prerequisites including that candidates hold the Chartered Financial Analyst (CFA®) designation, are employed in an occupational role by an IAA member firm at the time the designation is awarded, provide references demonstrating strong character and document five cumulative year’s work experience in one or more eligible occupational positions.
Personal Financial Specialist (PFS):
The PFS designation is a certification for certified public accountants (CPAs) that allows them to expand their expertise to include financial planning and wealth management. It involves studying areas such as estate planning, retirement planning, investing, and insurance.
In this comprehensive blog post, we have explored the essential aspects of the Series 65 exam, including its purpose, registration process, study recommendations, and key topics covered. We also addressed frequently asked questions, such as the passing score, exam length, and retake policies. Additionally, we delved into the waiver options available for individuals holding professional designations like CFA, CFP, ChFC, CIC, and PFS, as well as those with a combination of Series 7 and Series 66 licenses. For more details, visit the official NASAA and FINRA websites.
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