How to Get a Series 66 License: A Step-by-Step Overview

The Series 66 license, formally known as the Uniform Combined State Law Examination, is a credential for individuals aiming to work as both securities agents and investment adviser representatives. It was developed by the North American Securities Administrators Association (NASAA) to ensure financial professionals have the necessary knowledge to provide investment advice and execute securities transactions. Obtaining this license allows individuals to legally advise clients on various securities, including stocks, bonds, and mutual funds, expanding their professional capabilities.

Eligibility Requirements

Before an individual can pursue the Series 66 examination, several foundational prerequisites must be satisfied. A primary requirement involves successfully passing the Series 7 exam, officially titled the General Securities Representative Qualification Examination. The Series 7 exam focuses on general securities knowledge, providing a broad understanding of the industry that the Series 66 builds upon. Furthermore, individuals need to have passed the Securities Industry Essentials (SIE) exam, as it is a co-requisite for the Series 7 exam.

Certain professional designations may waive the Series 7 requirement, allowing candidates to proceed directly to the Series 66 exam. Examples of such designations include the Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) credentials. These designations demonstrate an existing level of financial expertise, which regulators recognize as sufficient to bypass the Series 7 examination.

A fundamental aspect of the eligibility process is securing sponsorship from a Financial Industry Regulatory Authority (FINRA) member firm. This sponsorship is required to take the Series 7 exam, and by extension, the Series 66 exam if taken after the Series 7. The sponsoring firm initiates the registration process by filing a Uniform Application for Securities Industry Registration or Transfer, known as Form U4, on the candidate’s behalf. This form includes personal information, employment history, and disciplinary disclosures, and candidates are required to provide fingerprints for a background check. Candidates must be at least 18 years of age to obtain this license.

Exam Registration

Once all eligibility requirements are met, the procedural steps for registering for the Series 66 exam can commence. The sponsoring FINRA member firm plays a central role in this stage, as they initiate the registration through FINRA’s Central Registration Depository (CRD) system. If an individual is not associated with a FINRA member firm but is eligible, they can open an enrollment window directly through FINRA’s Test Enrollment Services System (TESS).

Upon successful enrollment, FINRA grants the candidate a 120-day window within which they must schedule and take their exam. Candidates then proceed to schedule their exam appointment directly with Prometric, the designated testing vendor. The exam is administered in person at Prometric testing centers.

The examination fee for the Series 66 is $177. This fee is required at the time of registration and is necessary for each attempt. While the candidate is ultimately responsible for this cost, it is common practice for sponsoring firms to cover or reimburse the examination fee for their sponsored candidates.

Understanding Exam Content

The Series 66 examination assesses a candidate’s understanding of financial concepts and regulatory frameworks for investment adviser representatives and securities agents. The exam consists of 100 scored multiple-choice questions and 10 unscored “pretest” questions. Candidates are allotted 150 minutes, or two and a half hours, to complete the examination. To achieve a passing score, candidates must correctly answer at least 73% of the scored questions, meaning 73 out of 100.

The content is divided into four main areas, each with a specific weighting to reflect its importance.
Economic Factors and Business Information (8%): Covers economic indicators, business cycles, and monetary and fiscal policy.
Investment Vehicle Characteristics (17%): Tests knowledge of various investment products, their features, risks, and potential returns, including stocks, bonds, mutual funds, and annuities.
Client Investment Recommendations and Strategies (30%): Evaluates the ability to analyze client financial profiles, determine investment objectives, and formulate suitable investment strategies.
Laws, Regulations, and Guidelines, Including Prohibition on Unethical Business Practices (45%): Covers state and federal securities acts, related rules and regulations, ethical practices, and fiduciary obligations.

Effective Study Strategies

Preparing for the Series 66 exam requires a structured and consistent approach to effectively absorb the extensive content. Utilizing official study outlines and content specifications provided by NASAA can provide a clear roadmap of the topics to be covered. These outlines detail the specific knowledge and skills assessed, allowing candidates to prioritize their study efforts.

Leveraging third-party study materials is a common and effective strategy for many candidates. These resources often include comprehensive textbooks, online courses with video lectures, and flashcards designed to reinforce key terms and concepts. Many providers offer adaptive practice exams and customizable study plans to fit individual learning needs and schedules.

Engaging with numerous practice exams is an important part of the preparation process. Practice tests familiarize candidates with the multiple-choice format and question styles, which can differ from academic exams. Regularly taking practice exams helps identify areas of weakness, allowing for targeted review and improvement.

Creating a realistic study schedule and adhering to it can significantly enhance preparation. Most successful candidates dedicate between 75 to 85 hours of study, spread over several weeks. Active recall techniques, such as self-quizzing or explaining concepts aloud, can improve retention compared to passive reading. The focus should be on understanding the underlying concepts and their practical application rather than relying solely on rote memorization, especially for the regulatory and ethical components of the exam.

Exam Day and Post-Licensing Procedures

On the day of the Series 66 exam, candidates should arrive at the Prometric testing center with their appointment confirmation and a valid, government-issued identification. Acceptable forms of identification include a driver’s license, passport, or military ID. Check-in procedures involve verifying identity and often include a thumbprint scan to ensure the correct individual is taking the exam. Personal items are generally not permitted in the testing room, and candidates are provided with a basic calculator and scratch paper or a dry-erase tablet.

Upon completion of the exam, candidates typically receive an unofficial score report immediately. This report indicates whether the candidate passed or failed and usually provides a breakdown of performance by section. Passing the Series 66 exam qualifies an individual to register as both a securities agent and an investment adviser representative, subject to additional state-specific requirements. The sponsoring firm then finalizes the candidate’s registration with the appropriate state(s) and FINRA through the CRD system.

For candidates who do not pass the exam, specific re-take policies apply. After the first failed attempt, a waiting period of at least 30 days is required before another attempt can be scheduled. If a second attempt is unsuccessful, another 30-day waiting period is imposed. However, after a third failed attempt, the waiting period extends to 180 days, or approximately six months, for the fourth and subsequent attempts.

Maintaining the Series 66 license requires adherence to ongoing Continuing Education (CE) requirements. Investment adviser representatives registered in jurisdictions that have adopted NASAA’s model rule on IAR CE are subject to these requirements. These typically include both a Regulatory Element, which covers regulatory updates, and a Firm Element, which addresses product-specific training and compliance for the individual’s firm. Fulfilling these CE obligations ensures licensed professionals remain current with industry regulations and practices, allowing them to maintain their license. The Series 66 license remains valid as long as the holder is registered and employed in good standing. If registration is terminated, there is generally a two-year window to become re-registered before needing to retake the exam.