FINRA Series 65Exam information
Exam information
What it is, what's tested, and how it's scored.
Series 65 exam details
The Series 65 exam - the Uniform Investment Advisor Law Examination - is designed to test an individual's knowledge and ability to advise clients in the area of investing and to discuss general financial concepts. The exam seeks to qualify candidates as investment adviser representatives. The exam covers topics, both regulatory and strategic, that have been determined to be necessary to understand in order to provide investment advice to clients.
The Uniform Investment Advisor Law Exam (aka the Series 65 exam) was created to qualify candidates as investment adviser representatives. The exam covers topics, both regulatory and strategic, that have been determined to be necessary to understand in order to provide investment advice to clients.
Despite commonly being called the "FINRA Series 65" it is more accurately a North American Securities Administrators Association (NASAA) exam administered by FINRA.
The Series 65 exam is hosted by NASAA and costs $187 to register. Participants have 3 hours to answer 130 multiple-choice questions. The passing score is 70.8% (92/130).
Eligibility and sponsorship
The Series 65 does not have any prerequisites, and you do not need to be employed by or sponsored by a FINRA member firm in order to register for and take the exam. If you are sponsored, you will need to fill out and submit U4, otherwise, just enrolling/registering is sufficient. The form and registration can be found at and submitted electronically on FINRA's website.
It is worth noting that while the Series 7 is not required for this exam, the Series 7 is often considered a "co-requisite" for many financial advisor roles.
Administration of the exam
The Series 65 exam is administered via computer. A tutorial on how to take the exam is provided prior to taking the exam.
Each candidate's exam includes 10 additional, unidentified pretest items that do not contribute toward the candidate's score. The pretest items are randomly distributed throughout the exam. Therefore, each candidate's exam consists of a total of 140 items (130 scored and 10 unscored).
There is no penalty for guessing. Therefore, candidates should attempt to answer all items.
Candidates will be allowed 180 minutes to complete the Series 65 exam.
Candidates are not permitted to bring reference materials to their testing session. Severe penalties are imposed on candidates who cheat or attempt to cheat on NASAA-administered exams.
Scoring of the exam
All candidate test scores are placed on a common scale using a statistical adjustment process known as equating. Equating scores to a common scale accounts for the slight variations in difficulty that may exist among the different sets of exam items that candidates receive. This allows for a fair comparison of scores and ensures that every candidate is held to the same passing standard regardless of which set of exam items they received.
FINRA's Series 65 exam summary
Economic Factors and Business Information
15%
20 questions
Handling economic cycles, financial reporting, analytical methods, and types of risk. Topics include monetary and fiscal policy, economic indicators, financial reports and accounting fundamentals, quantitative methods, and basic risk concepts.
Investment Vehicle Characteristics
25%
32 questions
The characteristics of different types of investment vehicles. Topics include cash and equivalents, fixed income securities and valuations, equities and equity valuation, pooled investments, derivative securities, and insurance-based products.
Client Investment Recommendations and Strategies
30%
39 questions
Developing a client portfolio, portfolio theory, and suitability. Topics include business entities and trusts; client profiles; capital market theory; portfolio management strategies, styles and techniques; tax considerations; retirement and estate planning; special accounts; trading securities; exchanges and markets; and performance measurement.
Laws, Regulations, and Guidelines
30%
39 questions
The laws, rules, and regulations regarding investment advice. Topics include state and federal securities acts; rules and regulations for IARs and Broker-Dealers; regulation of securities and issuers; communication with clients and prospects; ethical practices; and fiduciary obligations.
Achievable Series 65 content outline
1
Introduction
Introduction to the Series 65 exam.
2
Investment vehicle characteristics
Financial products, their characteristics, and relation to suitability (benefits and risks). Primarily focuses on equity securities, debt securities, pooled investments, derivatives, alternative investments, and insurance products.
3
Recommendations & strategies
Understanding client profiles, portfolio strategies, capital market theory, tax considerations, brokerage accounts, retirement plans, estate planning, trading securities, and measuring security performance.
4
Economic factors & business information
Time value of money concepts (IRR, NPV), utilizing descriptive statistics to accurately measure market and portfolio data, and interpreting financial and valuation ratios.
5
Laws & regulations
Rules and regulations related to broker-dealers, agents, investment advisers, investment adviser representatives (IARs), issuers of securities, prohibited practices, and ethical duties. Additionally covers regulatory powers of the Securities and Exchange Commission (SEC) and state administrator.
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