What Can I Do With a Series 6 and 63 License?

The Series 6 and Series 63 licenses represent foundational credentials for individuals seeking to engage with specific financial products in the United States. These licenses are frequently pursued together, enabling professionals to navigate both federal and state securities regulations. Understanding these credentials is an important step for anyone considering a career involving the sale of certain investment products.

Scope of the Series 6 License

The Financial Industry Regulatory Authority (FINRA) Series 6 license authorizes individuals to sell a defined set of investment products. This license primarily covers shares of open-end investment companies, commonly known as mutual funds, which pool money from many investors to purchase a diversified portfolio of securities. Professionals holding this license can explain the characteristics, risks, and potential returns associated with various mutual fund offerings.

Beyond mutual funds, the Series 6 license also permits the sale of variable annuities and variable life insurance products. These are specialized insurance products that include an investment component, where the value can fluctuate based on the performance of underlying investment options. Additionally, individuals with a Series 6 can sell Unit Investment Trusts (UITs), which are investment vehicles that hold a fixed portfolio of securities, and shares of closed-end funds, but only during their initial public offering.

Scope of the Series 63 License

The Series 63 license, known as the Uniform Securities Agent State Law Examination, focuses on state securities regulations. This license does not, by itself, authorize the sale of any specific financial products. Instead, it is a requirement for individuals who wish to transact securities business within a particular state, acting in conjunction with a product-specific license like the Series 6. The purpose of the Series 63 is to ensure that registered representatives understand and comply with the state-level rules designed to protect investors.

State securities laws vary, covering aspects such as agent registration, ethical practices, and prohibitions against fraudulent activities. The Series 63 exam tests knowledge of these varying state provisions, ensuring professionals operate within legal boundaries across different jurisdictions. Because federal product licenses like the Series 6 do not cover state-specific regulatory requirements, the Series 63 is almost universally paired with them. This combination allows a representative to sell authorized products while adhering to the specific legal frameworks of the states where they conduct business.

Combined Capabilities and Professional Roles

Holding both the Series 6 and Series 63 licenses significantly expands a financial professional’s capabilities, allowing them to solicit and sell a specific range of investment products across various states. With these combined credentials, an individual can offer mutual funds, variable annuities, variable life insurance, and Unit Investment Trusts to clients. This dual licensing ensures compliance with both federal product-specific regulations and the state-level investor protection laws, providing a comprehensive authorization for these activities.

Professionals with these licenses often work as Registered Representatives within brokerage firms, mutual fund companies, or insurance agencies. Their primary focus typically involves helping clients understand and invest in investment company products to meet long-term financial goals, such as retirement planning or college savings. Common job titles include financial advisor, investment representative, or client service representative. They might also serve as wholesalers, distributing mutual funds or variable annuities to other financial professionals.

The work environment for these roles often involves direct client interaction, assessing financial situations, and recommending suitable investment company products. Client bases can range from individual retail investors saving for the future to small businesses establishing retirement plans for employees. The combined Series 6 and 63 licenses are a foundational requirement for building a career focused on guiding clients through investment choices involving these specific regulated products, offering a pathway for career advancement within these niches of the financial services industry.

Activities Not Permitted and Additional Licensing

While the Series 6 and Series 63 licenses enable specific investment activities, they do not authorize the sale or management of all financial products. For instance, individuals holding only these licenses are not permitted to sell individual stocks and bonds. Complex derivative products such as options or futures contracts also fall outside the scope of these licenses. They do not cover direct participation programs (DPPs) like limited partnerships.

Providing fee-based investment advice on a broader range of securities, where compensation is tied to assets under management rather than commissions from product sales, also requires additional licensing. This type of advisory service necessitates a Series 65 (Uniform Investment Adviser Law Examination) or a Series 66 (Uniform Combined State Law Examination) license. These additional licenses address the regulatory requirements for acting as an investment adviser, which involves a different fiduciary standard and broader scope of investment recommendations. Expanding into these areas would require further qualification beyond the Series 6 and 63.