Do You Have to Be Sponsored to Take the Series 66?
Understand the practical pathway to Series 66 certification. Explore the underlying requirements and essential steps for this financial license.
The Series 66 examination is a significant credential for financial professionals who aim to provide investment advice. It serves as a crucial step for individuals seeking to become registered as Investment Adviser Representatives (IARs) or securities agents. Understanding the requirements for this exam, including sponsorship needs, is important.
Understanding the Series 66 Exam
The Series 66, officially known as the Uniform Combined State Law Examination, assesses an individual’s knowledge of state securities laws and ethical practices. This exam is required for financial professionals who offer investment advice or engage in securities transactions. It covers topics including economic factors, investment vehicle characteristics, client recommendations, and prohibitions on unethical business practices.
Administered by FINRA, the exam consists of 100 multiple-choice questions. Candidates have two hours and thirty minutes to complete the examination and must achieve a score of 73% or higher to pass. The fee for the Series 66 exam is $177.
Sponsorship Requirements and the Series 7 Exam
Direct sponsorship by a firm is not required to register for and take the Series 66 examination. Individuals can self-enroll for this exam.
However, the Series 66 exam has a co-requisite: the Series 7 General Securities Representative Qualification Examination. Both the Series 66 and Series 7 must be successfully completed to qualify as an Investment Adviser Representative or securities agent. The Series 7 exam requires sponsorship from a FINRA-member firm. While an individual can take the Series 66 without direct sponsorship, a sponsoring firm is needed to fulfill the Series 7 requirement for licensure. A sponsoring firm initiates the application process for the Series 7 on behalf of the candidate.
How to Register for the Series 66 Exam
Registration for the Series 66 exam is managed through FINRA’s Central Registration Depository (CRD) system. If an individual is sponsored by a firm, its compliance department typically handles the registration process. This involves the firm filing a Uniform Application for Securities Industry Registration or Transfer, known as Form U4, on the candidate’s behalf.
Form U4 collects essential background information, including personal details, employment history, and any disciplinary disclosures. Once the Form U4 is submitted and processed, an exam enrollment window opens, usually for 120 days, during which the candidate can schedule their exam with a testing vendor like Prometric. Individuals not affiliated with a firm can self-enroll for the Series 66 by creating an account with FINRA and using Form U10. The exam fee, typically $177, is paid during this registration process.
Post-Exam Steps for Licensure
Passing the Series 66 exam, in conjunction with the Series 7, is a prerequisite for licensure. After successfully completing both examinations, individuals must proceed with state registration to become fully licensed. This involves registering with the appropriate state securities regulatory authorities.
The sponsoring firm plays a central role in facilitating this final registration through the CRD system, which also connects to the Investment Adviser Registration Depository (IARD). This process ensures that the individual’s qualifications and background information are properly recorded with state regulators. Upon successful state registration, the individual is officially authorized to act as an Investment Adviser Representative or securities agent. The Form U4 initially filed for exam registration is also used for ongoing updates to an individual’s registration record, reflecting any changes in employment, address, or other material information.