Can You Take the Series 63 Without a Sponsor?
Navigate the Series 63 exam process independently. Learn about its unique sponsorship rules and its role in state securities licensing requirements.
The Series 63 exam qualifies candidates as securities agents and covers state securities regulation. It is administered by FINRA on behalf of NASAA.
Understanding Securities Exam Sponsorship
Many securities examinations, particularly those administered by FINRA, require sponsorship from a FINRA-member firm. This means an individual must be associated with a registered broker-dealer or other entity before applying to take certain exams, such as the Series 7 or Series 6. The sponsoring firm assumes responsibility for the individual’s conduct and handles the exam application process.
The Series 63 Uniform Securities Agent State Law Examination, however, is a notable exception. Developed by the North American Securities Administrators Association (NASAA) and administered by FINRA, NASAA’s rules do not mandate firm sponsorship. This allows individuals not yet employed by a broker-dealer or investment adviser to complete the Series 63 exam independently, which can aid in preparing for future financial industry roles.
Registering for the Series 63 Exam
Individuals can register directly through FINRA. The first step involves creating an account on the FINRA Gateway to access the registration portal. During this process, individuals obtain a FINRA ID, essential for tracking qualifications.
Once the FINRA Gateway account is established, candidates can apply for the Series 63 exam. The application involves providing personal identification details. A fee of approximately $147 is required.
After the application and fee, FINRA opens a 120-day window to schedule and complete the exam. Scheduling is done through Prometric, the designated testing vendor, to secure an appointment at a local testing center. The Series 63 exam is administered in person.
Series 63 Exam Content and Structure
The Series 63 exam, formally known as the Uniform Securities Agent State Law Examination, assesses understanding of state securities regulations and ethical practices. Content is based on the Uniform Securities Act (USA), along with NASAA amendments and rules prohibiting dishonest business practices. Key topics include regulation of investment advisers, broker-dealers, agents, and securities.
The examination also covers ethical practices, obligations, and communication with customers. This includes understanding fiduciary duties, prohibited business practices, and handling client funds and securities.
The exam consists of 60 multiple-choice questions that count towards the final score. Candidates are allotted 75 minutes. To pass, an individual must correctly answer at least 43 questions (72%). Results are provided immediately upon completion.
The Series 63 in the Overall Licensing Landscape
The Series 63 plays a specific role in securities licensing. While passing this exam demonstrates knowledge of state securities laws and ethical conduct, it alone does not qualify an individual to buy, sell, or solicit securities, or to provide investment advice. It fulfills state-level registration requirements for individuals acting as securities agents or investment adviser representatives.
The Series 63 is commonly taken with other securities exams, such as the Securities Industry Essentials (SIE) Exam, Series 7 General Securities Representative Exam, or Series 6 Investment Company and Variable Contracts Products Representative Exam. These other examinations cover federal securities laws and a broader range of products or activities, and require FINRA member firm sponsorship for full registration. While the Series 63 can be obtained independently, its practical application often necessitates pairing it with these sponsored exams for full licensure and registration.