Series 63 Test Guide

By: Erin Hasinger, Tests.com

The Series 63 exam, or the Uniform Securities Agent State Law Exam, is a test used to qualify individuals to work as securities agents. A passing score on the Series 63 is required by nearly every US state as a requirement for state licensure to work in securities.

The exam was developed by the North American Securities Administrators Association,   or NASAA, and is administered by the Financial Industry Regulatory Authority, or FINRA. Series 63 covers state securities regulation principles as defined by the Uniform Securities Act. The exam is designed to allow state securities administrators to determine which candidates have the appropriate knowledge and understanding of the state’s securities laws and regulations.

The exam includes 65 multiple-choice questions, and test takers are given one hour and fifteen minutes to complete the exam. Of those 65 questions, only 60 count toward the final score; the other five are considered pretest questions are placed randomly throughout the exam.

The Series 63 exam is a computerized exam that is comprised of the following content areas:

- State Securities Acts and related rules and regulations (36 total items, or 60% of the exam)

     -   Regulation of investment advisers (3 questions)

     -   Regulation of investment adviser representatives (3 questions)

     -   Regulation of broker-dealers (12 questions)

     -   Regulation of agents of broker-dealers (6 questions)

     -   Regulations of securities and issuers (6 questions)

     -   Remedies and administrative provisions (6 questions)

- Ethical practices and fiduciary obligations (24 total items, or 40% of the exam)

     -   Communication with clients and prospects (8 questions)

     -   Compensation (4 questions)

     -   Client funds and securities (8 questions)

     -   Conflicts of interest and other fiduciary issues (4 questions)

To register, a firm can file a Form U4 on behalf of a candidate, or a candidate can register individually using Form U10. Both forms are available at http://www.nasaa.org. The $96.00 exam fee must be paid upon registration.

Once a candidate’s registration has been accepted, they will be notified that they have 120 days to schedule and take the exam. The exam is offered at Pearson and Prometric Test Centers in cities throughout the United States, and a list of locations by state can be found at www.finra.org.

Test takers must score at least a 72 percent to pass the exam. Scores for each individual section and for the test overall are provided immediately to the test taker following the exam. Scores are also made available online to candidates in about two days following the exam.

Those who do not pass the exam may retake the exam following a 30-day waiting period. After failing the exam three times, a candidate must wait 180 days before attempting the exam for a fourth time.

Many different books, study guides, DVDs, classes and other test preparation materials are available to help test takers prepare for the Series 63. Interested in finding out more? Take a look at our Series 63 Test Directory.