Series 63 vs 65 vs 66: Key exam differences

If you are considering a career in the securities industry, understanding the requirements for obtaining role-specific licenses should be your first move. Passing the necessary exams is a key step, and choosing between the Series 63, Series 65, and Series 66 licenses is an important decision based on your professional goals. Each license’s corresponding exam evaluates your knowledge across important areas such as securities products, investment advisory regulations, and relevant state laws.

In this article, we’ll compare the Series 63 vs. the 65 vs. the 66 exams in detail, highlighting their core differences, exam content, and the job opportunities each can unlock. We’ll also provide you with strategic tips on preparing to succeed in your licensing and career journey.

NASAA and Blue Sky Laws

First, a little background on these licenses: the Series 63, Series 65, and Series 66 exams, often known as the “blue sky law exams,” are administered by the Financial Industry Regulatory Authority (FINRA), but these exams are created and maintained by the North American Securities Administrators Association (NASAA).

NASAA and its network of state securities administrators play a central role in enforcing blue-sky laws, officially called the Uniform Securities Act, in each state. These laws are designed to protect investors and ensure transparency and fairness throughout all securities transactions.

Founded in Kansas in 1919, NASAA’s mission was to unify and standardize blue sky laws at the state level, providing the public with strong protection against fraudulent securities schemes and misleading investment opportunities. The Uniform Securities Act later became synonymous with “Blue Sky Laws,” a term originating from early securities regulations that aimed to stop deceitful financial schemes promising returns backed by little more than “so many feet of blue sky.”

Exam overviews

Series 63 exam overview

Now that you have some context, let’s start by going over the details of the Series 63 exam. The Series 63 license exam, formally known as the Uniform Securities Agent State Law Examination, is designed to test candidates on the core concepts and regulatory requirements of state securities law. Most states require individuals to pass the Series 63 if they wish to sell securities or provide investment advice within state boundaries.

The Series 63 exam consists of 60 multiple-choice questions and has a 75-minute time limit. To successfully earn your Series 63 license, you must answer at least 43 out of 60 questions correctly, achieving a passing score of approximately 72%. Key topics on the Series 63 test include:

• Regulations of Investment Advisers, including both State-Registered Advisers and Federal Covered Advisers
• Regulatory Standards for Agents of Broker-Dealers
• Administrative Provisions and Remedies
• Effective Communication with Customers and Prospects
• Ethical Practices and Obligations

By passing the Series 63, you demonstrate an understanding of both ethical obligations and regulations required for securities professionals. This foundational Series 63 license exam prepares you for a career in securities compliance across most states.

Series 65 exam overview

The Series 65 exam, officially known as the Uniform Investment Adviser Law Examination, evaluates candidates on the laws, regulations, and ethical responsibilities involved in providing investment advice to clients. In most states, earning a Series 65 license is a requirement for individuals who wish to offer fee-based investment advisory services.

The Series 65 covers a range of topics relevant to investment advisers through 130 multiple-choice questions, with a total duration of 180 minutes. To successfully pass the Series 65 exam, candidates must answer at least 92 questions correctly (approximately 70%). Subjects featured on the exam include:

• Basic Economic Concepts
• Financial Reporting
• Types of Fixed Income Securities
• Client Investment Recommendations and Strategies
• Laws, Regulations, and Guidelines Including Prohibition on Unethical Business Practices

Obtaining the Series 65 license is a crucial step for professionals aiming to provide comprehensive investment advice. The knowledge tested on the Series 65 exam also forms part of the content found on the Series 66 exam, which combines elements of both the Series 63 and Series 65 for broader licensing.

Series 66 exam overview

The Series 66 exam, officially known as the Uniform Combined State Law Examination, is a comprehensive test that merges the content of both the Series 63 and Series 65 exams. Earning a Series 66 license is necessary for individuals who wish to qualify as both securities agents and investment advisor representatives within a state. The Series 66 is often pursued by candidates who already hold, or plan to obtain, the Series 65 license, as it streamlines the process of meeting state registration requirements.

During the Series 66 exam, candidates are presented with 100 multiple-choice questions and have 150 minutes to complete the test. To pass the Series 66, test takers must achieve a score of at least 73%, which means correctly answering a minimum of 73 questions. The exam covers a broad range of topics, reflecting both Series 65 and Series 63 content, including:

• Economic Factors and Business Information
• Investment Vehicle Characteristics
• Client Investment Recommendations and Strategies
• Laws, Regulations, and Guidelines on Securities and Investment Advice
• Ethical and Professional Responsibilities

Successfully passing the Series 66 exam demonstrates proficiency in key areas required for state-level securities and investment advisory roles. Obtaining the Series 66 license, in combination with other FINRA qualifications such as the Series 65, allows professionals to provide a wider range of financial services to clients across multiple states.

Series 63 vs Series 65 vs Series 66 exam comparison

The chart below highlights the key features and differences between each “blue sky” exam:

As you can see, only one exam (Series 66) lists passing the Series 7, or the General Securities Representative license, as a prerequisite. The Securities Industry Essentials (SIE) is required for Series 7 licensing and, therefore, is also required for the Series 66. Still, taking the SIE is highly recommended before achieving any further licenses, as it helps develop a foundation in financial concepts needed for virtually all jobs in finance.

Upon further comparison, the Series 65 stands out as the longest exam of the two, yet the passing score is slightly lower. The relative difficulty of each exam is similar, though different test takers may find one exam easier to tackle than the other based on individual experience and comfort with the material.

The Series 65 vs 66 Exam: Which is easier?

In terms of Series 65 vs 66 difficulty, these two licensing exams share several similarities, yet there are important differences to consider. The structure, content coverage, and focus of the Series 65 vs. 66 exams set them apart for aspiring financial professionals. Let’s take a closer look at how the Series 65 and 66 compare in both format and substance:

Questions and questions per minute

The Series 65 has 130 questions and is 180 minutes, which means you have 1 minute and 23 seconds to answer each question. The Series 66 is 100 questions and 130 minutes long, which means you have 1 minute and 18 seconds to answer each question. Five seconds per question isn’t a huge difference, but when you compound it over the whole time period, it adds up to a couple of extra crucial minutes that you can use.

As mentioned in the previous section, the Series 65 is longer. Longer tests are simply harder, both for fatigue and because the test will cover more topics.

Series 65 vs 66 content

In terms of content, understanding Series 65 vs 66 is essential for anyone preparing for these licensing exams. The Series 65 exam features more questions focused on investment products, client suitability, and economics. These areas are also tested on the Series 7, so in many respects, the Series 65 includes a “mini Series 7” component to ensure candidates thoroughly grasp these key investment concepts. It’s important to note that while the Series 7 is a co-requisite for the Series 66, it is not required for the Series 65.

Both the Series 66 and 65 cover topics like investment products and suitability, but the 66 places greater emphasis on state securities laws and investment adviser regulations. This focus on legal and regulatory material leads some to view the Series 66 as a blend of the Series 63 and Series 65. However, this isn’t entirely accurate, since the Series 65 goes deeper into investment products and economics than the Series 66.

Deciding between Series 65 vs 66 depends on whether you find suitability and product knowledge (Series 65) or laws and regulations (Series 66) more approachable. Comparing the two exams and their respective career trajectories can help clarify the differences and help you determine which exam best aligns with your goals.

Series 63 vs Series 65 vs Series 66 career paths

In the two scenarios outlined above (SIE + 6 + 63; or SIE + 7 + 63), adding the Series 65 to your licensing credentials expands your qualifications beyond the Series 63 license alone. With the SIE, Series 6, Series 63 license, and Series 65, you are authorized to provide investment advice on mutual funds, investment companies, and variable annuity products. If you hold the SIE, Series 7, Series 63, and Series 65, you can offer advisory services on virtually all types of securities products.

The Series 66 gives you the right to sell and provide advice on similar products as the Series 63 license and Series 65 combined. To offer the most comprehensive suite of financial instruments, it may be more efficient to pursue the Series 66 instead of the two other licenses separately.

Given the flexibility of the Series 63 license, careers utilizing this credential span a wide range, from customer service and trading roles (which require the SIE and either the Series 6 or Series 7 in addition to the Series 63 license) to positions such as investment adviser and financial planner (which also require the Series 65).

Series 63 career path

First, it’s important to understand that holding only the Series 63 license is not sufficient to perform a fully licensed role in the securities industry. If you obtain your FINRA SIE, Series 6, and Series 63 licenses, you are entitled to facilitate transactions involving investment company securities and variable annuity products. This combination of licenses is the standard path for professionals focused on the sales side within insurance brokerages that do not engage in wealth management services.

Alternatively, if you complete your FINRA SIE, Series 7, and Series 63 licenses, you are permitted to facilitate transactions across nearly all types of securities products. This licensing route is common for individuals employed in sales positions at wealth management advisory firms who work exclusively with clients residing in their own state.

Series 65 career paths

The Series 65 license is unique among industry credentials as it stands as the only “standalone” qualification and requires no prior licenses, prerequisites, or firm sponsorship to register and take the exam. Earning the Series 65 license enables individuals to act as investment adviser representatives, granting the authority to provide investment advice and sell advisory products directly to clients. However, as mentioned above, if you wish to facilitate transactions involving securities products in addition to advisory services, you will need to obtain either the FINRA SIE and the Series 6, or the FINRA SIE and the Series 7 licenses, along with your Series 65 license.

The most common career paths associated with the Series 65 include investment advising and comprehensive financial planning, making the Series 65 license a crucial credential for professionals aiming to offer broad, client-focused investment services.

Series 66 career paths

The Series 66 license serves as a key qualification for professionals seeking dual registration as both a securities agent and an investment adviser representative. The Series 66 exam, designed by NASAA, effectively merges the content of both the Series 63 and Series 65 exams, offering candidates a well-rounded path to licensure. The “Series 63 portion” of the Series 66 allows individuals to operate as securities agents, provided they have also obtained the required FINRA SIE, plus either a Series 6 or Series 7 license. The “Series 65 portion” enables candidates to function as investment adviser representatives, granting them the authority to give personalized investment advice.

Pairing the Series 66 license with the FINRA SIE and Series 6 credentials allows professionals to facilitate transactions and provide advisory services for investment companies and variable annuities. Passing the Series 66 exam in conjunction with the SIE and Series 7 licenses greatly expands the range of securities products a candidate may advise on, covering nearly all types of investment vehicles.

When evaluating the Series 65 and 66, it’s important to note that while both licenses authorize individuals to give investment advice, the Series 66 combines agent registration (like Series 63) with advisory capabilities. As such, the Series 66 license is highly valued among those pursuing careers in financial planning, investment advising, securities sales, and wealth management. Often, professionals who already hold a Series 6 or Series 7 license choose to take the Series 66 exam to broaden their professional roles and client offerings.

This overview clarifies which career opportunities become accessible based on whether you pass the Series 63, 65, or 66 license exams under the NASAA framework. Now let’s move on to strategies for preparing for the exams and taking your next steps.

How to prepare for the Series 65 vs Series 66 exams

Once you have a test date locked in (aim to prepare at least a month in advance), it’s time to study for the exams. As a starting point, refer to the official outlines provided by NASAA (Series 63 outline, Series 65 outline, Series 66 outline). After that, there are many resources you can use to prepare, such as the online courses offered by Achievable.

You might also want to join study groups and get valuable input from people who’ve taken the tests before. You should also plan your study schedule ahead of time and review the material frequently, so you don’t get flustered come exam time.

Closing thoughts

These securities exams, Series 63, Series 65, and Series 66, are not easy, but they are not impossible either. Whatever path you take, you can greatly expand your credentials by obtaining one of these three licenses, increasing the number of products you can sell and manage in a given state. In short, here’s what each license can grant:

• Series 63: The right to sell securities or provide investment advice
• Series 65: The ability to offer fee-based investment advisory services
• Series 66: The authorization to serve as both a securities agent AND an investment advisor

Getting one (or multiple) of these licenses involves the right amount of preparation, dedication, and time, all of which are within your control. It’s up to you to determine which exam you’ll need for the career you want.