How to Pass the Series 66 on Your First Try

The Series 66, or Uniform Combined State Law Examination, is a comprehensive assessment for individuals seeking to become Investment Adviser Representatives (IARs) and securities agents. Passing this exam is a significant step for financial professionals aiming to provide investment advice and transact securities within various states. This examination ensures that individuals possess the necessary knowledge regarding securities laws, regulations, and ethical practices.

Understanding the Series 66 Exam

The Series 66 exam, also known as the NASAA Uniform Combined State Law Examination, qualifies individuals as both securities agents and Investment Adviser Representatives (IARs). It assesses a candidate’s understanding of state and federal securities laws, investment vehicles, and ethical business practices. The North American Securities Administrators Association (NASAA) developed this exam, and the Financial Industry Regulatory Authority (FINRA) administers it.

The exam consists of 100 scored multiple-choice questions, with an additional 10 unscored “pretest” questions used for research. Candidates are allotted 150 minutes to complete the examination. To pass, test-takers must correctly answer at least 73 of the 100 scored questions, equating to a 73% passing score.

The Series 66 exam content is divided into four main areas, each with an approximate weighting:
Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices (45%)
Client/Customer Investment Recommendations and Strategies (30%)
Investment Vehicle Characteristics (17%)
Economic Factors and Business Information (8%)

Prerequisites and Registration

Preparatory Part

Before an individual can sit for the Series 66 exam, certain prerequisites must be satisfied. A primary requirement is the successful completion of the Securities Industry Essentials (SIE) Exam and the Series 7 Exam. The SIE Exam covers foundational knowledge of the securities industry, including capital markets, regulatory agencies, and prohibited practices. The Series 7 Exam is more extensive, focusing on a broad range of securities products, markets, and customer accounts.

The Series 7 is a co-requisite to the Series 66, meaning both exams must be passed to fully qualify as an Investment Adviser Representative or securities agent. While candidates can take the Series 66 before the Series 7, full registration is contingent upon passing both. Individuals need sponsorship by a FINRA member firm or another approved regulatory body.

The sponsoring firm initiates the registration process by filing a Uniform Application for Securities Industry Registration or Transfer, known as Form U4, on behalf of the candidate. This form serves as a comprehensive record of an individual’s background, including employment history, disciplinary actions, and other personal details relevant to their eligibility. The information provided on Form U4 is stored in the Central Registration Depository (CRD) system, which regulatory bodies use to track securities professionals.

Procedural Part

Once all prerequisites are met and the Form U4 is filed by the sponsoring firm, FINRA opens a 120-day window for the candidate to schedule and take the Series 66 exam. The examination fee for the Series 66 is $177 and must be paid during enrollment.

Candidates schedule their examination appointment directly with Prometric, the testing vendor that administers the Series 66. This involves creating an account on the Prometric website, selecting the Series 66 exam, and choosing a suitable testing center and date. It is advisable to schedule the exam well in advance to secure a preferred date and location, as testing centers can sometimes be booked out. Upon scheduling, candidates receive a confirmation that includes the date, time, location, and test-day procedures.

Effective Study Strategies

Developing a key study plan is important for success on the Series 66 exam. Begin by setting a realistic timeline, typically ranging from several weeks to a few months, depending on your prior financial knowledge and available study time. Break down the extensive material into manageable daily or weekly goals, ensuring consistent progress through all content areas. This approach helps prevent overwhelm and allows for thorough absorption of complex topics.

Active recall, an effective study method, involves actively retrieving information from memory through self-quizzing, summarizing topics, or explaining concepts aloud. Spaced repetition, another effective technique, involves reviewing material at increasing intervals over time, reinforcing long-term memory retention. Utilizing flashcards, both physical and digital, can facilitate both active recall and spaced repetition, particularly for definitions, regulations, and numerical concepts.

Selecting high-quality study materials is important for comprehensive preparation. This includes official textbooks, online courses, video lectures, and study guides from reputable providers. Many resources offer detailed explanations, practice questions, and simulated exams that mirror the actual test environment. Supplementing core materials with additional readings on areas where understanding is weak can also be beneficial.

Practice questions and full-length practice exams are essential diagnostic tools for exam preparation. After completing practice tests, thoroughly review both correct and incorrect answers to understand the reasoning, identify weak areas, and reinforce concepts. Tracking progress over time allows for adjustments to the study plan, focusing more effort on challenging topics.

Efficient time management during study periods is also important. Designate specific blocks of time for focused study, minimizing distractions from social media, emails, or other interruptions. Creating a dedicated study environment free from noise can significantly improve concentration. Regular short breaks during study sessions can help maintain focus and prevent burnout.

Exam Day Preparation and Test-Taking Tips

Exam day preparation extends beyond studying. Prioritize sufficient rest the night before the exam. Avoid cramming new information; instead, lightly review key concepts or quick reference sheets. Confirm the testing center location and plan your route for timely arrival, accounting for potential traffic.

Before leaving, gather necessary documentation, including a valid, government-issued photo identification. Arriving 30 minutes early allows ample time for check-in and to settle in. Expect security protocols upon arrival, including fingerprinting, digital photos, and metal detector scans. Personal items like phones, smartwatches, and bags are not permitted in the testing room and must be stored in provided lockers.

During the exam, employ strategic test-taking techniques. Carefully read each question before answering, paying close attention to keywords like “except,” “not,” or “least.” If unsure, use elimination to discard incorrect choices, increasing the probability of selecting the right one. Manage time effectively by allocating appropriate time per question. If a question is challenging, flag it for review and move on.

The testing interface allows candidates to flag questions for later review, useful for difficult questions or those requiring more thought. Avoid excessively second-guessing answers once chosen, especially if your initial instinct was strong. Trust your preparation and avoid changing answers unless you identify a clear error in your initial reasoning. Preliminary results are usually provided immediately at the testing center upon completion of the exam.