Series 66 for Independent Investment Advisors

​The Series 66 exam, officially known as the Uniform Combined State Law Examination, is a crucial credential for individuals aiming to operate as independent investment advisors. Developed by the North American Securities Administrators Association (NASAA) and administered by the Financial Industry Regulatory Authority (FINRA), the Series 66 combines elements of the Series 63 and Series 65 exams, focusing on state securities regulations and ethical practices.​Wikipedia+2Investopedia+2Investopedia+2

🧾 Series 66 Overview

• Purpose: Qualifies individuals to act as both securities agents and investment adviser representatives.
• Exam Structure:
  • 100 multiple-choice questions (plus 10 unscored pretest questions).
  • Duration: 150 minutes.
  • Passing Score: 73% (73 out of 100 questions).
• Cost: $177.
• Corequisite: Must also pass the Series 7 exam to be fully licensed.​COMPLY+6NASAA+6Investopedia+6Investopedia+3FINRA+3NASAA+3Investopedia+4Investopedia+4NASAA+4

It’s important to note that while the Series 66 covers a broad range of topics, it omits certain product and strategy questions included in the Series 65, relying on the Series 7 to cover those areas. ​Investopedia

🧭 Pathway for Independent Investment Advisors

To operate independently as an investment advisor, you typically need to:​

1. Pass the Series 7 Exam: This exam assesses knowledge of general securities, including stocks, bonds, and options.​
2. Pass the Series 66 Exam: Focuses on state laws and ethical practices relevant to investment advising.​

Together, these exams qualify you to register as an Investment Adviser Representative (IAR), allowing you to provide fee-based investment advice and manage client portfolios. ​COMPLY

📝 Registration and Compliance

After passing the necessary exams, you must register with either:​

• State Securities Regulators: If managing less than $100 million in assets.​Wikipedia+1dfr.oregon.gov+1
• Securities and Exchange Commission (SEC): If managing $100 million or more.​Wikipedia

Registration involves submitting Form U4 and adhering to ongoing compliance requirements, including continuing education and ethical standards. ​dfr.oregon.gov+3Investopedia+3NASAA+3

📚 Continuing Education

Investment Adviser Representatives are subject to continuing education (CE) requirements, which may include:​FINRA

• Annual Regulatory Element Training: Covers updates on regulations and ethical practices.​
• Firm Element Training: Specific to the firm’s business and clients.​Investopedia

Staying current with CE requirements ensures compliance and enhances professional competence. ​FINRA

🚀 Conclusion

For those aiming to become independent investment advisors, obtaining the Series 66 license, in conjunction with the Series 7, is a vital step. This combination equips you with the necessary credentials to provide comprehensive investment advice and manage client assets, all while adhering to state and federal regulations.​

If you need further guidance on preparing for the Series 66 exam or navigating the registration process, feel free to ask!