Series 63 Exam Quick Reference:
Examinee Qualification: Securities agent
Series 63 Exam Overview
The Series 63 Exam was developed by the North American Securities Administrators Association (NASAA) and administered by the Financial Industry Regulatory Authority (FINRA). This exam tests knowledge of the Uniform Securities Act of 1956 and the Statements of Policy and Model Rules adopted by NASAA. The Uniform Securities Act prohibits fraudulent practices related to securities sales and solicitation and requires the registration of broker-dealers, investment advisers, investment adviser representatives, and securities representatives.
The Series 63 license by itself does not allow examinees to act as securities agents. It is always taken in conjunction with another securities agent license exam like the Series 7 (General Securities Representative), Series 6 (Investment Company Products/Variable Contracts Limited Representative), or other limited representative licenses.
After approval of enrollment, candidates have 120 days to take the exam. It the exam is not scheduled within 120 days, enrollees must enroll again and will again be subject to paying the fee.
Examinees who fail the exam have to wait 30 days to take it again. Examinees who fail the exam three or more times in a row must wait 180 days to take the exam again.
Series 63 Exam Content
Sixty percent (36 questions) of the exam covers State Securities Acts and related rules and regulations:
Investment advisers are firms that offer advice about securities in exchange for a fee. (3 Questions)
Investment Adviser Representatives are the individuals associated with an investment adviser firm. (3 Questions)
The SEC defines a broker as any person in the business of making securities transactions for accounts belonging to other people, and dealers as anyone in the business of buying and selling securities for their own account. (12 Questions on BD/6 Questions on BD Agents)
Issuers are defined as governments, corporations, or investment trusts that register and sell securities to finance their own business operations.
Forty percent (24 Questions) of the exam covers ethics and fiduciary obligations. Fiduciary obligations refer to the expectations of trust between securities agents and their clients with regard to making investment decisions that are always in the clients’ best interest.
States That Require The Series 63 Exam for Securities Agent Licensing
States That Do Not Require The Series 63 Exam for Securities Agent Registration
Applying for the Series 63 Exam
Employing firms that are members of the Financial Industry Regulatory Authority (FINRA) will submit Form U4 and pay the examination fee on behalf of applicants applying to take the Series 63 exam as employees or associates of these FINRA-member firms. Form U4 and exam fees will be submitted through FINRA’s Central Registration Depository.
Applicants applying to take the Series 63 exam as employees or associates of non-FINRA member firms must submit Form U10 and pay the fee themselves. Form U10 and exam fees will be submitted through FINRA’s Central Registration Depository (CRD) if the exam is being taken to satisfy requirements set forth by a Self Regulatory Organization with access to the CRD. Applicants who are taking the exam electively in preparation for further licensing will submit form U10 and exam fees directly through their state’s Securities Commission.
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