Do You Need Series 63 After Series 7?

❓ Do You Need the Series 63 License After the Series 7?

The Series 63 and Series 7 are both important exams for individuals looking to work in the securities industry. However, whether you need the Series 63 after passing the Series 7 depends on the type of securities business you intend to conduct and the state regulations.

Key Differences Between the Series 63 and Series 7

• Series 7: This is the General Securities Representative Exam, which qualifies individuals to sell a wide range of securities products, including stocks, bonds, options, mutual funds, and more. It is a national exam.
• Series 63: The Uniform Securities Agent State Law Exam focuses on state regulations regarding securities transactions. It allows individuals to conduct business as a securities agent within a specific state. The Series 63 is state-specific and not required for national registration.

When Do You Need the Series 63 After Series 7?

• State Requirement: The Series 63 exam is generally required if you plan to do business in a specific state. Most states require both the Series 7 and the Series 63 for you to conduct securities business there, especially if you are offering advice or selling securities to retail investors.
• For Investment Advisors: If you are working as a registered representative and intend to offer investment advice to clients within a state, the Series 63 is typically required.
• Not Always Required: Some states have exemptions or may allow individuals who have passed other similar exams (like the Series 65 or Series 66) to bypass the Series 63 requirement.

Series 63 Exam Overview

• Focus: It covers state securities regulations, ethical standards, and legal aspects of selling securities in a state.
• Eligibility: To take the Series 63 exam, you must be sponsored by a FINRA-member firm or have passed the Series 7 exam. It is a requirement for most people working as securities agents in the U.S.

In Summary

• Yes, you typically need the Series 63 after the Series 7 if you plan to do business in most U.S. states. The Series 63 is required by the state in addition to the Series 7 to ensure you are compliant with state-specific securities laws.
• No, you don’t need the Series 63 if you are only working in a federal capacity or if you’re working under an exemption (e.g., using the Series 65 or Series 66).

Always check with your firm or state securities regulator for specific state requirements to ensure you’re meeting all necessary qualifications.