What is the Series 66 Exam?
The Series 66, officially the Uniform Combined State Law Examination, is a securities exam that combines the content of both the Series 63 and Series 65. It qualifies individuals as both securities agents AND investment adviser representatives at the state level.
Series 66 Quick Facts
| Feature | Details |
|---|---|
| Full Name | Uniform Combined State Law Exam |
| Administrator | NASAA (via FINRA) |
| Questions | 110 (100 scored, 10 unscored) |
| Time Limit | 150 minutes (2.5 hours) |
| Passing Score | 73% (73 out of 100) |
| Cost | $177 |
| Prerequisite | Must pass Series 7 first |
| Pass Rate | ~70% |
Series 66 vs Series 63 + Series 65
You can achieve the same registrations by either:
- Option A: Series 66 (one exam)
- Option B: Series 63 + Series 65 (two separate exams)
Comparison
| Factor | Series 66 | Series 63 + 65 |
|---|---|---|
| Number of Exams | 1 | 2 |
| Total Questions | 110 | 190 (60 + 130) |
| Total Time | 150 min | 255 min (75 + 180) |
| Total Cost | $177 | $334 ($147 + $187) |
| Prerequisite | Series 7 | 65 has none; 63 needs Series 7/6/22 |
| Combined Study | Yes | Separate prep needed |
Which Should You Choose?
Choose Series 66 if:
- You've already passed Series 7
- You want one exam instead of two
- You need both agent and IAR registration
- Your firm recommends it
Choose Series 63 + 65 separately if:
- You only need one type of registration now
- You haven't passed Series 7 yet (can take 65 first)
- You want to stagger your exams
- You're pursuing IAR-only registration (65 alone)
Series 66 Exam Content
The Series 66 covers content from both the Series 63 and Series 65:
Content Breakdown
| Section | Percentage | Questions |
|---|---|---|
| Economic Factors & Business Information | 5% | ~5 |
| Investment Vehicle Characteristics | 20% | ~20 |
| Client Investment Recommendations & Strategies | 30% | ~30 |
| Laws, Regulations & Guidelines (Including Prohibition on Unethical Business Practices) | 45% | ~45 |
Detailed Topics
Economics & Business (5%)
- Economic indicators
- Financial reporting
- Quantitative methods
- Business cycles
Investment Vehicles (20%)
- Equity securities
- Fixed income securities
- Pooled investments (mutual funds, ETFs)
- Derivative securities
- Alternative investments
- Insurance products
- Variable products
Client Recommendations (30%)
- Client profiles and suitability
- Investment strategies
- Portfolio management
- Retirement planning
- Capital market theory
- Risk and return
Laws & Regulations (45%)
- State securities registration
- Agent and IA registration
- Business practices
- Fiduciary responsibilities
- Prohibited practices
- Ethics
- Recordkeeping requirements
Study Strategy for the Series 66
Recommended Study Time
| Approach | Hours | Timeline |
|---|---|---|
| Intensive | 30-40 | 2-3 weeks |
| Standard | 40-60 | 4-5 weeks |
| Part-time | 60-80 | 6-8 weeks |
Study Priority by Topic Weight
Focus your time based on exam weight:
-
Laws & Regulations (45%) - Most heavily weighted
- State registration requirements
- Fiduciary duties
- Prohibited practices
- Ethics scenarios
-
Client Recommendations (30%) - Second priority
- Suitability analysis
- Investment strategies
- Risk tolerance
- Retirement planning
-
Investment Vehicles (20%) - If you passed Series 7, review
- Product characteristics
- Risk/return profiles
- Tax implications
-
Economics (5%) - Lowest priority
- Basic concepts
- Quick review sufficient
Key Concepts to Master
Registration Requirements
| Entity | State Registration Required When... |
|---|---|
| Broker-Dealer | Has a place of business in state OR deals with retail clients |
| Agent | Effects transactions in securities in state |
| Investment Adviser | Has place of business in state OR has 6+ retail clients |
| IAR | Works for state-registered IA in that state |
Exemptions (Heavily Tested!)
Exempt Securities:
- US Government securities
- Municipal bonds
- Bank securities
- Nonprofit securities
Exempt Transactions:
- Isolated non-issuer transactions
- Institutional investor transactions
- Private placements (limited offers)
- Unsolicited orders
Fiduciary Duties
Investment advisers owe fiduciary duties:
- Duty of Loyalty - Act in client's best interest
- Duty of Care - Provide suitable recommendations
- Full Disclosure - Disclose conflicts of interest
- Best Execution - Obtain best prices for trades
Common Series 66 Mistakes
1. Under-studying Regulations
With 45% of the exam on laws/regulations, many candidates spend too little time here.
2. Confusing Registration Rules
Know the differences between:
- Federal vs. state registration
- Broker-dealer vs. investment adviser
- Agent vs. IAR
3. Missing Exemption Details
Exemptions are heavily tested. Know which securities and transactions are exempt.
4. Ignoring Ethics Scenarios
Many questions present ethical dilemmas. Know prohibited practices cold.
5. Assuming Series 7 Knowledge is Enough
The Series 66 has different emphasis. Don't skip products/investments review.
Series 66 Pass Strategies
1. Focus on the 45%
Spend proportionally more time on laws and regulations. This section makes or breaks most candidates.
2. Create Comparison Charts
| Registration | Federal | State |
|---|---|---|
| Broker-Dealer | SEC | State Admin |
| Investment Adviser | SEC (>$110M) | State (<$100M) |
| Agent | N/A | State |
| IAR | N/A | State |
3. Memorize Key Numbers
- Administrator can issue stop orders for 10 business days
- Agents must pass exam within 2 years of application
- IAs must keep records for 5 years (first 2 in office)
- Consent to service of process lasts until revoked
4. Practice Scenario Questions
The exam presents many scenarios. Practice identifying:
- What registration is required?
- Is this an exempt security/transaction?
- Is this conduct prohibited?
5. Take Full Practice Exams
- Complete 3-5 full practice exams (100+ questions)
- Score 80%+ consistently before scheduling
- Review every wrong answer thoroughly
After Passing the Series 66
Once you pass, you can register as:
- Securities Agent (with Series 7) - Sell securities products
- Investment Adviser Representative - Provide investment advice
State Registration
You'll need to register in each state where you:
- Have clients
- Have a place of business
- Solicit business
Most states accept Series 66 for dual registration.
Continuing Education
Many states require CE credits to maintain registration:
- Typical: 12-24 hours every 1-2 years
- FINRA CE: Annual Regulatory Element after Series 7
Series 66 vs Other Exams
| Exam | Purpose | Questions | Time | Pass Score |
|---|---|---|---|---|
| Series 63 | State agent registration | 60 | 75 min | 72% |
| Series 65 | IAR registration | 130 | 180 min | 72% |
| Series 66 | Combined 63 + 65 | 110 | 150 min | 73% |
Final Preparation Checklist
- Completed 40-60 hours of study
- Mastered registration requirements
- Memorized key exemptions
- Reviewed fiduciary duties
- Completed 3+ full practice exams
- Scoring 80%+ consistently
- Reviewed all missed questions
- Rested night before exam