What is the Series 65 Exam?
The Series 65, officially the Uniform Investment Adviser Law Examination, qualifies individuals to act as Investment Adviser Representatives (IARs). Unlike the Series 7, the Series 65 has no prerequisites and doesn't require firm sponsorship.
This makes the Series 65 popular for:
- Career changers entering financial services
- Fee-only financial planners
- Those who want to provide investment advice without selling securities
Series 65 Quick Facts
| Feature | Details |
|---|---|
| Full Name | Uniform Investment Adviser Law Exam |
| Administrator | NASAA (via FINRA) |
| Questions | 140 (130 scored, 10 unscored) |
| Time Limit | 180 minutes (3 hours) |
| Passing Score | 72% (94 out of 130) |
| Cost | $187 |
| Prerequisite | None |
| Pass Rate | ~68-72% |
Why Choose Series 65?
No Prerequisites Required
Unlike Series 7, you can take the Series 65 without:
- Firm sponsorship
- Prior securities exams
- Employment in financial services
Career Flexibility
The Series 65 allows you to:
- Work for a Registered Investment Adviser (RIA)
- Provide investment advice for fees
- Act as a fiduciary for clients
- Build a fee-based practice
Path to Independence
Many advisors use Series 65 to:
- Start their own RIA firm
- Transition from commission to fee-based
- Escape broker-dealer restrictions
Series 65 Exam Content
Content Breakdown
| Section | Percentage | ~Questions |
|---|---|---|
| Economic Factors & Business Information | 15% | 20 |
| Investment Vehicle Characteristics | 25% | 33 |
| Client Investment Recommendations & Strategies | 30% | 39 |
| Laws, Regulations & Guidelines | 30% | 39 |
Detailed Topic Coverage
1. Economic Factors & Business Information (15%)
| Topic | Key Concepts |
|---|---|
| Economic Indicators | GDP, CPI, unemployment, leading/lagging |
| Monetary Policy | Federal Reserve, interest rates, money supply |
| Fiscal Policy | Government spending, taxation |
| Business Cycles | Expansion, peak, contraction, trough |
| Financial Reporting | Balance sheet, income statement, ratios |
| Quantitative Methods | Time value of money, statistics |
2. Investment Vehicle Characteristics (25%)
| Category | Products to Know |
|---|---|
| Equity Securities | Common stock, preferred stock, ADRs |
| Fixed Income | Bonds, treasuries, municipals, corporates |
| Pooled Investments | Mutual funds, ETFs, hedge funds, REITs |
| Derivatives | Options, futures (basic concepts) |
| Alternative Investments | Real estate, commodities, private equity |
| Insurance Products | Annuities, life insurance |
3. Client Investment Recommendations (30%)
| Topic | What to Know |
|---|---|
| Client Profiles | Risk tolerance, time horizon, objectives |
| Asset Allocation | Strategic vs. tactical, rebalancing |
| Portfolio Theory | Modern Portfolio Theory, diversification |
| Risk Measures | Standard deviation, beta, alpha, Sharpe ratio |
| Retirement Planning | IRAs, 401(k)s, pension plans, RMDs |
| Tax Considerations | Capital gains, tax-advantaged accounts |
| Estate Planning | Wills, trusts, gifting strategies |
4. Laws, Regulations & Guidelines (30%)
| Area | Key Topics |
|---|---|
| Uniform Securities Act | Registration, exemptions, definitions |
| SEC Regulations | Investment Advisers Act of 1940 |
| Fiduciary Duty | Loyalty, care, disclosure |
| Prohibited Practices | Fraud, manipulation, conflicts |
| Recordkeeping | Requirements, retention periods |
| Ethics | Codes of conduct, best practices |
Fiduciary Standard
A key concept for Series 65 is the fiduciary duty owed by investment advisers:
| Duty | Meaning |
|---|---|
| Loyalty | Put client's interests first |
| Care | Make informed, suitable recommendations |
| Disclosure | Reveal all conflicts of interest |
| Best Execution | Obtain best prices for client trades |
| Confidentiality | Protect client information |
Study Strategy
Recommended Study Time
| Approach | Hours | Timeline |
|---|---|---|
| Intensive | 40-50 | 3-4 weeks |
| Standard | 50-70 | 5-6 weeks |
| Part-time | 70-90 | 7-9 weeks |
The Series 65 is longer and more challenging than Series 63.
Study Priority by Weight
| Priority | Section | Weight | Focus Level |
|---|---|---|---|
| 1 | Laws & Regulations | 30% | High |
| 2 | Client Recommendations | 30% | High |
| 3 | Investment Vehicles | 25% | Medium |
| 4 | Economic Factors | 15% | Lower |
Key Concepts to Master
Investment Formulas:
Current Yield = Annual Income / Current Price
Dividend Yield = Annual Dividends / Stock Price
Total Return = (Ending Value - Beginning Value + Income) / Beginning Value
Sharpe Ratio = (Portfolio Return - Risk-Free Rate) / Standard Deviation
Risk Measures:
| Measure | What It Tells You |
|---|---|
| Standard Deviation | Total risk (volatility) |
| Beta | Market risk (systematic) |
| Alpha | Risk-adjusted excess return |
| R-Squared | How much return explained by market |
Common Mistakes to Avoid
1. Underestimating the Exam
The Series 65 is harder than Series 63:
- More questions (140 vs 65)
- Longer time (3 hours vs 75 minutes)
- Broader content (investments + law)
2. Skipping Economic Theory
While only 15%, economics questions are often missed because candidates skip this section.
3. Confusing Registration Requirements
Know the differences between:
- SEC registration (>$110M AUM)
- State registration (<$100M AUM)
- Exempt advisers
4. Missing Fiduciary Concepts
The fiduciary standard appears throughout:
- Suitability questions
- Ethics scenarios
- Disclosure requirements
Series 65 vs Other Exams
| Factor | Series 65 | Series 66 | Series 7 |
|---|---|---|---|
| Purpose | IAR only | IAR + Agent | Securities sales |
| Prerequisite | None | Series 7 | SIE |
| Questions | 140 | 110 | 135 |
| Time | 180 min | 150 min | 225 min |
| Cost | $187 | $177 | $245 |
| Sponsor Needed | No | Yes (for S7) | Yes |
Which Path to Choose?
Series 65 alone if:
- You want to be an IAR only (no securities sales)
- You don't want to take Series 7
- You're starting your own RIA
Series 7 + Series 66 if:
- You want both sales and advisory authority
- You're working at a broker-dealer
- You want maximum flexibility
Exam Day Tips
Time Management
- 140 questions in 180 minutes = 1.3 minutes per question
- Flag difficult questions and return later
- Use all available time
Question Strategies
- Read the entire question including all choices
- Watch for "EXCEPT" and "NOT"
- Look for the BEST answer, not just a correct one
- Trust your first instinct
Before the Exam
- Get good rest
- Review fiduciary duties and key formulas
- Arrive 30 minutes early
- Bring two forms of ID
After Passing
Immediate Steps
- Results displayed on screen immediately
- Wait for FINRA/NASAA processing
- Apply for IAR registration in your state(s)
- Associate with an RIA (or start your own)
State Registration
- Register in each state where you have clients
- Pay state registration fees
- Complete any state-specific requirements
Ongoing Requirements
- Maintain registration with an RIA
- Complete continuing education if required
- Follow all regulatory requirements
- Uphold fiduciary duty
Career Paths with Series 65
| Role | Description |
|---|---|
| Investment Adviser Rep | Work for an existing RIA |
| Financial Planner | Provide comprehensive planning |
| Wealth Manager | Serve high-net-worth clients |
| RIA Owner | Start your own advisory firm |
| Fee-Only Advisor | Charge fees only, no commissions |