Series 66 Exam
The North American Securities Administrators Association (NASAA) offers the Uniform Combined State Law Examination (known as Series 66) for certification purposes. The Series 66 test is taken by people who are working to meet the criteria to become licensed as either an agent (AG) or an investment adviser (IA). Every state uses this test as part of the criteria for AG and/or IA. The test is not the only requirement for licensing, but it is part of the process.
Candidates will be given 150 minutes to finish 110 multiple-choice items. Of these, ten items are not scored; these are pre-trial items which may be used on future exams. Candidates will not know which items are scored and which are not.
The content of Series 66 exam is broken down as follows:
20 questions on investment analysis, recommendations, and strategies, as follows:
- Show comprehension regarding quantitative ways to evaluate investments (3-4)
- Determine investment performance (2)
- Determine and evaluate a client’s financial profile to create an appropriate investment policy and plan (6)
- Identify kinds of retirement plans and associated issues (2)
- Recognize risks – includes definitions, market impact, businesses, and personal investments (2-3)
- Show comprehension of portfolio management strategies, styles, and techniques – including fixed income and equities (3-4)
80 questions on legal and regulatory guidelines, including prohibition on unethical business practices, as follows:
- Show comprehension of pertinent state securities acts and related rules and regulations (37)
- Show that you will use ethical practices and meet fiduciary responsibilities – NASAA Model
- Rule on Unethical Business Practices of Investment Advisers and Federal Covered Advisers,
- NASAA Statements of Policy on Dishonest and Unethical Business Practices by Broker-Dealers and Agents, Uniform Securities Act, Investment Advisers Act of 1940, Securities Exchange Act of 1934, Securities Act of 1933, and Uniform Prudent Investors Act (43)
The final result will be based on the test as a whole, and candidates will get the score right after finishing. The minimum score required for passing the Series 66 test changes occasionally, so candidates will need to check to see where the current standard has been set. If a candidate is unsuccessful in taking the test, he or she may take it again a second and third time after waiting thirty days. If unsuccessful on all three tries, the candidate will need to wait 180 days before all other attempts.