Series 65 Quick Reference Chart for Advisors
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
No Comments
🧾 Series 65 Quick Reference Chart for Advisors
📘 Essential Rules, Limits, and Definitions for Fast Review
The Series 65 exam is broad, covering economics, ethics, investment vehicles, portfolio theory, and regulatory guidelines. This one-page quick reference chart condenses the most testable content for investment advisers — perfect for last-minute review or daily study.
📍 1. Investment Adviser Definition & Exemptions
| Investment Adviser (IA) Definition | Exempt From IA Registration |
|---|---|
| Gives advice on securities | Banks |
| Does so as a business | Lawyers, Accountants, Teachers, Engineers (LATE) |
| Receives compensation | Publishers offering general (non-tailored) advice |
| Must register if giving advice for compensation | Broker-dealers whose advice is incidental |
📍 2. Registration Thresholds (AUM Based)
| Adviser Type | Assets Under Management (AUM) | Register With |
|---|---|---|
| Small adviser | < $25 million | State only |
| Mid-size adviser | $25M–$100M | State (unless exempt) |
| Large adviser | ≥ $110 million | SEC (federal) |
| “Gray area” | $100M–$110M | Choice of state or SEC |
📍 3. Key Forms & Timeframes
| Form | Purpose | Time Requirement |
|---|---|---|
| Form ADV Part 1 | IA general info for SEC/state | Filed before registration |
| Form ADV Part 2 | Disclosure brochure to clients | Delivered at/before contract |
| Form U4 | Registers IAR with the state | Updated within 30 days |
| Form U5 | Filed upon termination | Within 30 days |
| Rescission | Return of funds to settle civil dispute | Client has 30 days to respond |
📍 4. Fiduciary Duty vs. Suitability
| Fiduciary Standard (IA) | Suitability Standard (BD) |
|---|---|
| Act in client’s best interest | Recommend suitable investments |
| Full disclosure of conflicts | No fiduciary obligation |
| Ongoing duty to monitor investments | No ongoing monitoring required |
📍 5. Key Economic Concepts
| Term | Definition |
|---|---|
| Leading indicators | Predict market direction (e.g., new orders, stock prices) |
| Lagging indicators | Confirm trends (e.g., unemployment rate) |
| Yield curve | Plots interest rates vs. time to maturity |
| Inverted yield curve | May signal upcoming recession |
| Monetary policy | Controlled by the Fed to influence interest rates |
| Fiscal policy | Government spending/taxation decisions |
📍 6. Tax Considerations
| Account Type | Tax Feature |
|---|---|
| Traditional IRA | Tax-deferred, taxed at withdrawal |
| Roth IRA | Tax-free growth, post-tax contributions |
| Municipal bonds | Federal tax-exempt (and possibly state/local) |
| Capital gains | Long-term >1 year = lower tax rate |
📍 7. Penalties & Enforcement
| Violation | Penalty or Limitation |
|---|---|
| Criminal (fraud) | Up to $10,000 fine and/or 5 years in prison |
| Civil statute limitations | 3 years from violation, 2 years from discovery |
| Rescission offer response | 30 days |
📍 8. Antifraud & Prohibited Practices
🚫 Always Illegal:
- Misrepresenting facts or omitting material info
- Borrowing from clients (unless BD or family)
- Guaranteeing gains or performance
- Failing to disclose conflicts of interest
- Excessive trading (churning)
🎓 Bonus Tip: For success on the Series 65, know the difference between registration requirements, client classifications, and fiduciary obligations cold.
Want a printable PDF of this chart or flashcard version? Just say the word.
And for complete Series 65 prep, head to:
👉 https://finra-exam-mastery.com
Study smart. Pass strong. Get licensed.