Series 66 and NASAA – Understanding the Connection

🏛️ Series 66 and NASAA – Understanding the Connection

The Series 66 Exam is not just another securities test—it is deeply rooted in the regulatory mission and framework of NASAA, the North American Securities Administrators Association. To fully grasp what the Series 66 covers and why it matters, it’s essential to understand the connection between this exam and the organization behind it.

🧩 What Is NASAA?

• 🌐 NASAA stands for the North American Securities Administrators Association
• 🏛️ Founded in 1919, it is the oldest international investor protection organization
• 🌎 Members include securities regulators from all 50 U.S. states, Washington D.C., Puerto Rico, Canada, and Mexico
• 🎯 NASAA’s mission: Protect investors and ensure fair and efficient markets at the state level

📘 Why NASAA Created the Series 66

The Series 66 exam was developed by NASAA to streamline the licensing process for professionals seeking dual registration as:

• 📌 Securities agents (broker-dealer representatives)
• 📌 Investment adviser representatives (IARs)

Before the Series 66, candidates were required to pass both the Series 63 and Series 65 exams. The Series 66 consolidates these into one exam, making it more efficient while still covering all state-level regulatory knowledge.

🔍 Series 66 Scope and NASAA’s Influence

The Series 66 reflects NASAA’s regulatory priorities by testing areas such as:

• ⚖️ State securities acts and regulations
• 📜 Fiduciary responsibilities and ethical conduct
• 📊 Investment vehicle characteristics and suitability
• 🧠 Client-focused recommendations and planning strategies
• 📈 Economic and financial principles relevant to advisory practices

All exam questions are designed based on NASAA’s Content Outline, which is updated to reflect changing laws and regulatory expectations.

🧾 Series 66 vs. SEC Regulations

While the SEC governs federal securities law, the Series 66 focuses on state-level law, aligning directly with the Uniform Securities Act (USA), which NASAA helps enforce.

Key distinctions tested on the exam include:

• 🧩 Registration requirements for firms and individuals
• 📑 Disclosure obligations under state law
• 🧭 Ethical practices and prohibited conduct
• 🔒 Custody, discretion, and financial reporting

🧠 Who Needs the Series 66?

You need to take the Series 66 if:

• You are already taking or have passed the Series 7 exam
• You want to be licensed as both a registered representative and investment adviser representative
• You plan to work with clients in state-regulated advisory roles

💡 Note: Series 66 is not valid without Series 7. The two exams work together to satisfy both NASAA and FINRA requirements.

🚀 Move Forward with Confidence

Understanding NASAA’s role helps you study with purpose. The Series 66 isn’t just about memorizing rules—it’s about demonstrating that you can act in the best interest of clients under a state-regulated advisory framework.

👉 Explore Series 66 Prep Materials Now

Learn the law. Understand the regulators. Pass the exam.