Series 65 vs 66: Which is right for you?
In the world of finance, aspiring professionals can encounter a variety of examinations, including the Series 65 and Series 66 licensing tests. Both the Series 65 exam and Series 66 exam are designed to assess core competencies within the investment advisory industry. While there is some overlapping subject matter, both tests and licenses serve different purposes.
Despite surface-level similarities, there are important differences between the Series 65 and Series 66 exams, particularly in terms of prerequisites, regulatory scope, and application. This article clarifies these distinctions, highlighting their unique requirements and practical uses to provide clear insight into the significance of each exam.
Purpose and regulatory context
The Series 65 license, officially called the Uniform Investment Adviser Law Examination, is a key credential administered by both the North American Securities Administrators Association (NASAA) and the Financial Industry Regulatory Authority (FINRA). Passing the Series 65 exam is essential for individuals who wish to become Investment Adviser Representatives (IARs) and provide paid investment advice or portfolio management services through a Registered Investment Adviser (RIA) firm. Holding a Series 65 license satisfies most state and federal requirements to offer professional investment consulting and client portfolio management.
In comparison, the Series 66 license, or Uniform Combined State Law Examination, is also overseen by NASAA but serves a distinct regulatory niche. The Series 66 exam is uniquely designed to be taken alongside the Series 7 General Securities Representative Exam, as it does not function as a standalone qualification. Because the structure of the Series 66 relies on prior completion of the Series 7, candidates must possess a Series 7 license before earning their Series 66 license. When passed together, the Series 66 and Series 7 exams collectively authorize individuals to work as both securities agents and IARs.
In summary, the Series 66 exam efficiently integrates content from both the Series 63 (Uniform Securities Agent State Law Examination) and Series 65 exams, providing a comprehensive path for those already holding the Series 7 credential.
Structural differences
The Series 65 license is entirely self-sufficient, providing candidates with immediate authority to advise clients upon passing the exam, regardless of whether they have completed any other licensing requirements. This quality makes the Series 65 license highly attractive for individuals seeking to enter the advisory profession without pursuing activities related to securities sales or brokerage transactions. Passing the Series 66 exam, on the other hand, offers no independent functionality. The Series 66 license is only valid when combined with a Series 7 registration. Only by obtaining both credentials can a candidate use the Series 66 license to simultaneously satisfy qualifications as both an investment advisor representative and a securities agent.
Content and knowledge domains
Despite covering similar subject matter, the Series 65 and 66 exams differ significantly in content and focus. The Series 65 exam offers a broader scope in advisory knowledge, encompassing a wide range of topics such as economic indicators, financial reporting, portfolio analysis and management, retirement planning, and the application of the Uniform Securities Act. In addition, the Series 65 exam assesses an individual’s understanding of ethical considerations, including standards for disclosures, managing conflicts of interest, and upholding professional conduct.
In contrast, the Series 66 exam places less priority on economic theory and fundamental analysis, as these concepts are generally addressed through the prerequisite Series 7 exam. Instead, the Series 66 concentrates more on regulatory statutes, fiduciary responsibilities, and business practices, particularly as they relate to professionals who serve dual roles by providing investment advice and executing transactions. This distinction in content highlights that, while both credentials are valuable, the choice between Series 65 vs. Series 66 depends on one’s specific career objectives and the nature of their advisory or transactional responsibilities.
Format and difficulty
Exam | Series 65 | Series 66 |
|---|---|---|
Official title | Securities Agent State Law Exam | Combined State Law Exam |
Purpose | Entitles registered financial advisors to provide investment advice in a chosen state | Enables registered securities agents and advisory professionals to sell securities and provide investment advice in a chosen state |
Prerequisite | None | Series 7 (co-requisite) |
Time limit | 180 minutes | 150 minutes |
Questions | 130 | 100 |
Passing score | 92/130 (70%) | 73/100 (73%) |
The Series 65 exam consists of 130 multiple-choice questions, not including 10 unscored pretest items designed to evaluate new content and scattered across the test. Candidates are given 180 minutes to complete it, and a minimum passing score of about 70% is required to earn state licensure. Because the Series 65 is considered a standalone exam, many candidates find it particularly challenging without prior industry experience or related exams.
The Series 66 exam is structured with 100 multiple-choice questions and also features 10 unscored pretest questions. Candidates have 150 minutes to finish the exam, with a required passing score of 73%. Although the Series 66 exam is shorter in duration and smaller in scope compared to the Series 65 exam, it is specifically designed for individuals who have already demonstrated competency through the Series 7. Consequently, the overall difficulty of the Series 66 depends on a candidate’s grasp of securities concepts covered in previous examinations.
Professional applications and strategic considerations
Both the Series 65 and Series 66 examinations enable professionals to qualify for licensure as an IAR, yet each credential shapes a unique career trajectory within the financial services industry. Choosing the Series 65 offers an efficient pathway for those targeting advisory roles that emphasize portfolio management and financial planning. For individuals whose roles focus primarily on providing investment advice without direct involvement in securities transactions, the Series 65 streamlines the licensing process. Passing the Series 65 exam alone permits registration as an adviser without requiring additional exams.
Comparatively, those preparing for responsibilities that blend investment advisory work with executing securities transactions may find a combination of the Series 7 and 66 exams more suitable. The pairing of the Series 7 license and Series 66 broadens professional horizons, allowing practitioners to operate effectively in both advisory capacities and brokerage functions, particularly within broker-dealer-affiliated advisory firms.
The bottom line
When evaluating taking the Series 65 or 66 for your career, it’s important to know that these exams serve distinct needs in financial regulation. The Series 65 is structured as a comprehensive, stand-alone licensure for those exclusively offering investment advice and managing client portfolios. Conversely, the Series 66 is dependent upon holding a current Series 7; it is designed to empower financial professionals with the ability to operate in dual advisory and securities sales roles. Developing a clear insight into the Series 65 vs. the 66 guides disciplined exam choice and demonstrates a nuanced grasp of licensure fundamentals governing the U.S. financial landscape.
