Series 63 Exam (Uniform Securities Agent State Law Examination)
The Series 63 exam, administered by FINRA on behalf of the North American Securities Administrators Association (NASAA), tests your knowledge of state securities laws and regulations. Passing this exam is a requirement for individuals who want to work as securities agents in most U.S. states.
Exam Content:
The exam is divided into two main sections:
State Securities Acts and Related Rules and Regulations (75%): This section covers topics like:
⚫ Uniform Securities Act (USA) and NASAA Statements of Policy and Model Rules
⚫ Securities registration requirements (exemptions, broker-dealer registration)
⚫ Prohibited practices (fraud, manipulation, suitability)
⚫ Fiduciary duties and ethical obligations
⚫ Customer communication and recordkeeping
Ethical Practices and Fiduciary Obligations (25%): This section focuses on:
⚫ Standard of conduct for securities professionals
⚫ Conflicts of interest and their management
⚫ Suitability obligations and best execution practices
⚫ Anti-money laundering (AML) and know-your-customer (KYC) rules
Exam Format:
⚫ Number of questions: 60 multiple-choice questions (5 unscored pre-test questions may also be included)
⚫ Exam duration: 75 minutes
⚫ Passing score: 43 out of 60 scored questions (72%)
⚫ Delivery format: Computer-based testing at Prometric testing centers or remotely with online proctoring
Resources for Studying:
⚫ NASAA Series 63 Exam Content Outline: https://www.nasaa.org/exams/exam-content-outlines/
⚫ FINRA Series 63 webpage: https://www.finra.org/registration-exams-ce/qualification-exams/series63
⚫ Various test prep providers offer study materials and practice exams
⚫ Start studying early and devote sufficient time to prepare.
⚫ Familiarize yourself with the exam format and question types.
⚫ Utilize various study resources like textbooks, online courses, and practice exams.
⚫ Focus on understanding the concepts rather than just memorizing facts.
⚫ Take practice exams to identify your strengths and weaknesses.