When you’re looking into the securities industry, figuring out which exams you have to take can be exhausting.
After all, there are 32 different FINRA Series exams, and every single one has a seemingly random number name. As a beginner in the industry, it’s easy to get lost.
But you’re not here about those. You’re here to figure out Series 63 vs 65—and luckily, that’s a much easier task.
In this article, I will break down the key differences between Series 63 vs 65, discuss their respective benefits, and help you decide which is the best fit for your career in the securities business! Let’s go.
Key Takeaways
- Series 63 Exam: This exam focuses on state-level compliance, ensuring securities agents adhere to the Uniform Securities Act and state securities laws.
- Series 65 Exam: This exam qualifies individuals to serve as investment adviser representatives, allowing them to provide investment advice and manage client portfolios.
- Career Paths: Series 63 is often required for professionals who want to sell securities, while Series 65 is necessary for those who wish to provide investment advice without being a broker-dealer.
- State-Specific Requirements: Series 63 ensures compliance with state regulations, while Series 65 prepares professionals for offering financial planning and advisory services.
- Licensing Prerequisites: Series 63 typically requires a sponsoring firm, while Series 65 can be taken independently, making it more accessible for those starting as independent investment advisers.
What Is the Series 63 Exam?
The Series 63 exam, also known as the Uniform Securities Agent State Law Examination, is designed to ensure that securities agents understand state-specific regulations and the laws surrounding the sale of securities within that state. It is a necessity for anyone working in the securities industry at the state level.
Who Needs the Series 63 License?
The Series 63 license is required for:
- Broker-Dealer Agents: Individuals working at broker-dealer firms who must comply with state securities laws to sell securities.
- Investment Adviser Representatives: Those involved in securities sales (but not providing investment advice) who must also adhere to state regulations.
Ultimately, the Series 63 exam is necessary for individuals aiming to sell securities in any state, ensuring compliance with state securities administrators and securities regulators.
Series 63 Exam Details
- Format: 60 scored and five unscored multiple-choice questions
- Passing Score: ~72% (43 of 60 answers correct)
- Time Limit: 75 minutes
- Exam Fees: $147 per attempt
The exam focuses primarily on state-specific laws under the Uniform Securities Act, including requirements for registering as a securities agent, anti-fraud provisions, and rules for the sale of investment products like mutual funds.
What Is the Series 65 Exam?
The Series 65 exam, also called the Uniform Investment Adviser Law Examination, is a qualification required for individuals who want to serve as investment adviser representatives. This exam qualifies professionals to provide investment advice on a fee-based model, typically through the role of a registered investment advisor.
Who Needs the Series 65 License?
The Series 65 license is required for:
- Investment Adviser Representatives: Professionals offering personalized investment advice or managing client portfolios.
- Independent Financial Professionals: Those seeking to act as registered investment advisers, either independently or with a firm, to manage assets and provide financial advice.
The Series 65 exam is crucial for those who want to provide investment advice or advise clients on investments without being affiliated with a brokerage firm or needing a Series 7 license.
Series 65 Exam Details
- Format: 130 scored and 10 unscored multiple-choice questions
- Passing Score: ~71% (92 of 130 answers correct)
- Time Limit: 180 minutes
- Exam Fees: $187
The exam covers topics like economic factors, investment products, retirement planning, and ethical practices for financial advisers. It is broader than Series 63, delving into areas like investment strategies and how to meet client needs effectively.
Key Differences Between Series 63 vs 65
While both the Series 63 and Series 65 exams are important for professionals in the financial industry, their functions and scope differ significantly.
Here’s a quick comparison:
| Feature | Series 63 | Series 65 |
|---|---|---|
| Purpose | Ensures compliance with state-specific securities laws. | Qualifies individuals to give investment advice and manage client portfolios. |
| Who Needs It | Securities agents and investment adviser representatives who wish to sell securities within a state. | Investment adviser representatives who provide investment advice. |
| Focus | State-level compliance, ethics, and securities regulations. | Investment strategies, asset management, and client advisory practices. |
| Required For | Selling securities, engaging in securities business within a state. | Providing investment advice and managing client investments. |
| Career Path | Broker-dealer representatives, securities agents. | Investment advisers and wealth management professionals. |
| Key Topics | State securities laws, anti-fraud provisions, and registration requirements. | Investment products, financial planning, ethics, tax strategies. |
Do You Need Both the Series 63 and Series 65?
In some situations, you may need both licenses, depending on your role in the securities industry:
- Broker-Dealer Agents: If you work as a broker-dealer agent and also want to provide investment advice, you’ll need both the Series 63 and Series 65 licenses.
- Investment Adviser Representatives: If you plan to give advice under a registered investment advisor (RIA) model while complying with state securities laws, both exams may be necessary.
The Series 63 ensures you understand state securities laws, while the Series 65 prepares you to manage investments and advise clients. If your goal is to manage client assets and offer investment guidance, the Series 65 is typically required.
Career Paths for Series 63 and Series 65 License Holders
Both exams lead to distinct career opportunities in the securities industry.
Series 63 holders typically work in broker-dealer firms, assisting with securities transactions and ensuring compliance with state securities laws. Their role may include selling securities and helping clients understand investment products, though they are not directly involved in providing advice.
Series 65 holders can provide investment advice directly to clients, advising on retirement planning and asset management and helping clients navigate financial products. This license is especially important for professionals who want to focus on providing independent advice or work with a registered investment advisor.
Preparing for the Series 63 and Series 65 Exams
Both exams require dedicated preparation, but the focus and topics differ. Here are some tips for success!
- Study Materials: For both exams, it is essential to invest in quality study materials from providers like Kaplan or STC to ensure comprehensive coverage of the exam topics.
- Practice Exams: Simulate the exam experience with practice questions and full-length practice exams. This can help you become familiar with the format and improve your time management skills.
- Focus on Key Areas:
- For Series 63 exam prep, focus on state securities laws, ethical practices, and compliance requirements.
- For Series 65 exam prep, focus on investment products, portfolio management, and financial planning strategies.
- Review Exam Requirements: Ensure that you meet any prerequisites for the exams. For the Series 63 exam, you need to be sponsored by a firm, while the Series 65 exam does not require sponsorship but requires compliance with state registration.
Final Thoughts
So, Series 63 vs 65: which do you choose? Let’s simplify.
If you’re looking to sell securities products and ensure compliance with state laws, the Series 63 exam is the right choice. On the other hand, if you aim to provide investment advice and manage client portfolios, the Series 65 exam is necessary to become a qualified investment adviser representative. It may even be in your best interest to get them both!
Whichever exam you choose, you’re building a strong foundation to build your dream career. I wish you the best of luck in your endeavors!
FAQs
If you want to sell securities and comply with state laws, choose Series 63. If you want to offer advice, go for Series 65.
No, Series 63 and 65 do not equal Series 66. Series 66 combines both requirements.
The Series 65 license lets you provide investment advice as an investment adviser representative.
The Series 63 license ensures compliance with state securities laws and allows you to sell securities within a state.
Yes, you can take Series 65 without Series 63, but if selling securities is part of your role, both may be needed.
