Overview
– The Series 66 (Uniform Combined State Law Examination) is a NASAA-designed exam used to qualify individuals as investment adviser representatives (IARs) and securities agents at the state level. It tests knowledge of state and federal securities laws, portfolio management, client recommendations, and investment products. The exam is administered by FINRA but developed and maintained by NASAA. (NASAA; FINRA; Investopedia)
Key facts at a glance
– Format: 100 scored multiple‑choice questions + 10 unscored pretest questions (total 110 questions presented).
– Time allowed: 150 minutes (2½ hours).
– Passing score: 73 correct answers out of 100 scored questions (73%).
– Content weightings: Laws & regulations 45%; Client recommendations & strategies 30%; Investment vehicles 17%; Economic factors & business information 8%. (NASAA)
– Co‑requisite: FINRA Series 7 must be passed as well—Series 7 is a prerequisite for using Series 66 in place of Series 65. (NASAA; Investopedia)
– Cost: $177 (as of 2024). Employers typically register/pay on candidates’ behalf. (FINRA/Investopedia)
– Testing location: As of April 1, 2022 the Series 66 must be taken in person at an approved testing center except for candidates with approved testing‑accommodation reasons. (NASAA; FINRA)
– Calculator / materials: Electronic calculators supplied by the exam administrator are the only calculators allowed. Dry-erase marker and whiteboard are provided. No reference materials are permitted. (NASAA)
– Retake policy: If you fail, you must wait 30 days before retaking. (NASAA)
What the Series 66 allows you to do
– When combined with a passing Series 7, passing the Series 66 allows a financial professional to register with a state as an investment adviser representative and also act as a securities agent—so you can both sell securities and give securities-related investment advice at the state level. (NASAA; Investopedia)
How the Series 66 compares to Series 63 and Series 65
– Series 66 = essentially a combined exam covering subject matter in Series 63 (state law) and Series 65 (investment adviser topics), but it assumes the candidate will hold the Series 7 for product knowledge. Therefore:
• If you already have Series 7, you can take Series 66 instead of taking Series 63 + Series 65.
• If you do not have Series 7, many candidates take Series 65 (or Series 63 + 65) instead.
– Generally considered less broad than Series 65 for a candidate without Series 7 because Series 66 omits some product/analysis content covered in the Series 65. (NASAA; Investopedia)
Exam content — more detail
– Economic Factors & Business Information (8%): financial statements, quantitative methods (IRR, NPV), types of risk.
– Investment Vehicle Characteristics (17%): fixed-income valuation, derivatives, alternative investments, insurance products.
– Client/Customer Investment Recommendations & Strategies (30%): client types, profiling, portfolio management, capital market theory, retirement and tax considerations, trading accounts, performance measurement.
– Laws, Regulations & Guidelines / Unethical Practices (45%): federal/state securities acts, regulations, fiduciary duties, prohibited practices, compliance/ethics. (NASAA)
How difficult is the Series 66?
– Difficulty is often described as moderate to high because the exam covers a wide breadth of detailed regulatory and fiduciary material. Prep providers estimate pass rates at roughly 65–70% (FINRA/NASAA do not publish an official pass rate). Your difficulty will depend on prior knowledge, familiarity with securities products and law, and preparation time. (Prep providers; Investopedia)
Practical, step‑by‑step guide to register, prepare, take, and use the Series 66
Step 1 — Confirm prerequisites and decide route
– If you already hold or will take the Series 7, plan to take Series 66 (you will generally need to have passed Series 7). If you will not take Series 7, evaluate Series 65 instead (Series 65 alone can qualify you as an IAR). (NASAA; Investopedia)
Step 2 — Employer registration / exam registration
– Employers commonly register candidates by filing Form U4 (Uniform Application for Securities Industry Registration or Transfer) for state registration and paying the exam fee. Confirm with your firm’s compliance/training team how they handle registration and payment. (FINRA/Investopedia)
Step 3 — Schedule testing appointment
– Tests must be taken in person at approved testing centers unless you have an approved accommodation. Check FINRA/NASAA pages for current scheduling instructions and available centers. Bring required ID and any admission documents provided after scheduling. (NASAA; FINRA)
Step 4 — Build a study plan (practical suggestions)
– Timeline: Many candidates prepare over 4–8 weeks; adjust upward or downward based on experience.
– Emphasize weighting: Allocate study time to reflect exam weights—spend the most time on Laws & Regulations (45%) and Client Recommendations (30%).
– Use multiple study methods: read exam outlines (NASAA content outline), use a reputable Series 66 prep course/textbook, work many practice questions and timed full-length practice exams, and review explanations for missed items.
– Practice exams: Simulate exam conditions (150 minutes for 100 scored questions) to build pacing. Focus on mastering regulatory specifics, fiduciary concepts, and key definitions.
– Flashcards and summaries: For statutes, prohibited practices, suitability rules, and fiduciary duties, use concise recall tools.
– Attend classes or webinars if you need structure. (NASAA; typical prep program recommendations)
Step 5 — Materials to have during study
– NASAA Series 66 Exam Content Outline (primary reference for topics and relative weights).
– One or more commercial prep books/courses that include thousands of practice questions and explanations.
– Timed mock exams to build endurance and timing.
– Formula sheets or lists of key definitions (for personal use during study only—no materials allowed during the exam). (NASAA)
Step 6 — Exam day checklist
– Arrive early with acceptable government photo ID.
– Expect only the electronic calculator provided, a dry-erase board/marker, no personal materials.
– Follow testing-center and proctor instructions strictly—cheating penalties are severe. (NASAA; FINRA)
Step 7 — If you pass
– Passing Series 66 plus Series 7 allows state registration as an IAR/securities agent. Your employer (or you, depending on firm procedure) will submit necessary state registration forms. Confirm with your firm’s compliance group how they will effect state registration and Form U4 updates. (NASAA; FINRA)
Step 8 — If you fail
– You must wait at least 30 days before retaking. Use the interval to analyze weak topics, work more practice questions, and adjust your study plan. (NASAA)
Accommodations, online testing exceptions, and other rules
– The Series 66 is administered in person at approved centers except for candidates who provide medical proof that they cannot attend a testing center and who receive an approved accommodation. Candidates requiring accommodations should follow FINRA’s/test provider’s accommodation request procedures. (NASAA; FINRA)
Cost and employer reimbursement
– Exam fee: $177 (2024). Many firms pay the fee; check with your employer. Additional costs may include prep course fees and study materials. (FINRA/Investopedia)
Common mistakes and how to avoid them
– Underestimating laws/regulations: The largest portion of the exam is regulatory—don’t skimp on studying statutes, fiduciary duties, and prohibited practices.
– Poor time management in practice tests: Simulate real timing and develop a consistent pacing strategy.
– Relying only on passive reading: Active question practice and explanation review are essential.
– Forgetting Series 7 prerequisite: Confirm sequencing with your firm—Series 7 is generally required to use Series 66 in place of Series 65. (NASAA; Investopedia)
Resources and references (primary)
– North American Securities Administrators Association (NASAA) — Series 66 Exam Content Outline and Exam Overview pages.
– Financial Industry Regulatory Authority (FINRA) — Series 66 candidate information and testing accommodation pages.
– Investopedia — “What Is Series 66?” overview and summary.
(Links and exact NASAA/FINRA pages can be found by searching “NASAA Series 66 exam content outline” and “FINRA Series 66 exam”).
The bottom line
– The Series 66 is a state‑law exam that, when paired with the Series 7, lets a financial professional legally provide securities-related investment advice and transact securities with state registration as an IAR and agent. It’s broad and regulation‑heavy; success requires focused study in the areas with the highest exam weight (laws/regulations and client recommendations) plus plenty of targeted practice questions under timed conditions.
Editor’s note: The following topics are reserved for upcoming updates and will be expanded with detailed examples and datasets.