How Long Does a Series 63 License Last?

The Series 63 Uniform Securities Agent State Law Examination serves as a foundational qualification for financial professionals across the United States. It plays a significant role in state securities regulation, ensuring individuals understand the legal and ethical obligations involved in selling securities. The examination focuses on state-level securities laws, often referred to as “blue sky laws,” designed to protect investors. Administered by the Financial Industry Regulatory Authority (FINRA), this exam is developed by the North American Securities Administrators Association (NASAA).

The Series 63 License Explained

The Series 63 license is a credential issued by the North American Securities Administrators Association (NASAA). This license enables individuals to solicit orders for any security in a given state, register as a securities agent, and process securities transactions. It emphasizes understanding state securities regulations, ethical business practices, and fiduciary duties.

This license is typically required for registered representatives, investment adviser representatives, and anyone engaged in the solicitation or sale of securities at the state level. While many financial professionals also hold federal licenses like the Series 6 or Series 7, the Series 63 specifically addresses state-specific regulatory requirements.

Maintaining License Validity

The Series 63 license does not possess a fixed expiration date. Instead, its validity depends on continuous association with a FINRA-member firm or a state-registered investment adviser. The license becomes inactive if an individual leaves the securities industry or is not actively registered with a firm.

Maintaining an active license also involves fulfilling specific continuing education (CE) requirements, which consist of two main components: the Regulatory Element and the Firm Element. The Regulatory Element is a mandatory annual program focusing on regulatory, compliance, ethical, and sales practice standards. All registered persons must complete this requirement by December 31 each year.

The Firm Element is designed by each member firm to address the unique training needs of its registered personnel. Firms must develop and maintain a CE program that reflects their size, organizational structure, and business activities, reviewing and updating it at least annually. This program must cover topics related to professional responsibility and the roles and activities of registered individuals, ensuring ongoing competence and adherence to industry standards.

NASAA also offers an Exam Validity Extension Program (EVEP), which allows eligible individuals to maintain the validity of their Series 63 exam for up to five years. Similarly, FINRA has a Maintaining Qualifications Program (MQP) that provides a pathway for individuals to keep their qualifications active after terminating their registration, provided they meet certain conditions and complete annual CE.

Reactivating an Expired License

If a Series 63 license becomes inactive due to a lapse in registration, there is typically a timeframe within which it can be reactivated without requiring the individual to retake the exam. This period is generally set at two years following the termination of registration with a firm. Should an individual not re-register with a firm within this two-year window, the license will generally expire, necessitating a retake of the examination.

Reactivating an inactive license involves re-registering with a new firm and fulfilling any outstanding continuing education obligations. If an individual remains CE inactive for two consecutive years, their registrations will be administratively terminated, which then requires re-qualification.

For those seeking to maintain their qualifications beyond the standard two-year lapse, programs like NASAA’s Exam Validity Extension Program (EVEP) and FINRA’s Maintaining Qualifications Program (MQP) offer solutions. These programs allow eligible individuals to maintain the validity of their Series 63 exam for up to five years by completing annual CE requirements, provided they meet specific eligibility criteria, such as having been registered for at least one year prior to termination and enrolling in the program within two years of their termination date.