🏛️ Series 63 and NASAA: What You Need to Know

The Series 63 exam, formally known as the Uniform Securities Agent State Law Examination, is required for individuals who want to become securities agents and offer securities in most U.S. states. The exam is developed and maintained by NASAA—the North American Securities Administrators Association.

Understanding the connection between Series 63 and NASAA is key to mastering both the exam and your future regulatory obligations.

📘 What Is NASAA?

NASAA is the oldest international organization devoted to investor protection. It represents state, provincial, and territorial securities regulators in the U.S., Canada, and Mexico.

NASAA’s Key Roles:

• Develops and maintains the Series 63, 65, and 66 exams
• Sets model rules for state-level securities regulation
• Focuses on protecting retail investors
• Coordinates enforcement efforts across jurisdictions

NASAA is not a federal agency—it focuses on state oversight and the consistent application of securities laws across states.

🧾 What Does the Series 63 Cover?

The Series 63 exam tests knowledge of NASAA’s Uniform Securities Act (USA) and related rules and regulations. It focuses on:

• State registration of securities and firms
• Broker-dealer and agent obligations
• Investment adviser and IAR registration (limited coverage)
• Antifraud rules
• Ethical practices and fiduciary responsibilities
• Administrative procedures (investigations, penalties, etc.)

📊 Exam Structure

• Number of Questions: 60 (plus 5 unscored pretest questions)
• Time Limit: 75 minutes
• Passing Score: 72% (43 out of 60 correct)
• Exam Provider: FINRA, on behalf of NASAA
• Sponsorship Requirement: Yes – typically requires Form U4 submission through a FINRA-member firm

🧠 NASAA Model Rules to Know

You will encounter several NASAA-defined rules on the exam, such as:

• NASAA Model Rule on Unethical Business Practices
• Suitability Obligations of Agents
• Requirements for Discretionary Authority
• Filing and Fee Rules for State Registration
• Standards for Disclosures and Conflicts of Interest

These model rules ensure uniform standards across all states, and you must know how to apply them in real-world scenarios.

🔄 Federal vs. State Authority

NASAA focuses on state-level securities regulation, while FINRA and the SEC regulate federal markets.

• Series 7 + Series 63 = License to sell securities in most states
• Series 63 = Tests your understanding of state law, not product knowledge
• You must comply with both state and federal regulations

✅ Why Series 63 Matters

• Required for almost all broker-dealer agents
• Covers state law not included in Series 6 or 7
• Teaches regulatory boundaries and ethical practices
• Essential for legal compliance and avoiding disciplinary action

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