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The Series 66 Exam

By: Lara Newcomb

The Series 66 offers a combined license to act as a Registered Investment Advisor. The license can be studied for and taken independently. It also allows for professionals such as CPA's, Lawyers, Mortgage Brokers and others to offer investment services or refer investment clients to registered brokers for commission sharing. The Series 66 is given by the NASD and is comprised of 100 multiple choice test questions. There is a 150 minute time limit, and a 70% grade is needed to pass the exam. The test can be taken at designated NASD testing centers. AIT can provide further information and assist with registration. Topics for study include: Investment advisor act regulations, Suitibility, and SEC and state regulations.

The Series 66 exam covers almost the same material as the Series 65 but in lesser detail. It also includes questions for securities agents as well as investment advisor representatives.

Both exams include questions on these areas:
1. Ethical and Legal Considerations
2. Investment Vehicles
3. Investment Recommendations and Strategies

People who are already working in the finance industry or people who are looking to get in, will consider the Series 66 exam very closely. The benefit is that it is a combined license. Passing the Series 66 is the equivalent of passing the Series 65 and 63. The Series 63 is a state law exam. The 65 is the RIA exam.

The 66 exam is more of a rules test than the Series 65. It is comprised of 100 multiple choice questions. A grade of 71% is considered passing. If the examination is failed, you must wait 30 days before you can sit for the Series 66 again.

The topics covered include:
Registration and Licensing for Agents
Securities Registration
Business Practices
Securities Evaluation
Rules and Regulations

The NASD authorized this exam some years ago so that Series 7 representatives could become investment advisors without having to sit for the Series 65. The 65 is a larger exam and it covers a wider array of securities concepts. Since someone who already has the Series 7 license does not need to re-learn much of the basic covered in the 65, the NASD allows those people to take the combined test.

You can take the Series 66 first. However, the license can not be registered and effective without a Series 7. Most will take the Series 7 first, because of that fact, but it is not a requirement to sit for one before the other.
You can take either test to become an RIA (Registered Investment Advisor).

All in all, the Series 66 test is not a hard exam. It is usually passed by using a home study course that includes text books and a CD Rom test program. Since the exam is mostly rules based questions, most students find that reading the books once and then practicing the sample test questions is the best way to prepare. You want to be at a point where the practice final exams are in the 80% scoring range. This allows you some margin for error when you sit for the real exam.

Adding certifications and licenses like the Series 66 can give a boost to your resume above other candidates looking to fill the same job as you. It's also great education for CPA's, financial website publishers or any other professional dealing with customers in a finance related area.

Article Source: http://articleaddict.com

Series 66 - Adding certifications and licenses like the Series 66 can give a boost to your resume above other candidates looking to fill the same job as you.

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