The Validity and Renewal of the Series 66 License
The Series 66 license is a state-specific credential that qualifies individuals to act as financial advisors and transaction coordinators for securities-based products (NASAA, 2023). It is regulated by the North American Securities Administrators Association (NASAA) and is considered a comprehensive state license for financial services professionals (StateRequirement, 2024).
License Validity
The Series 66 license does not have an expiration date (StateRequirement, 2024). Instead, it remains current as long as the licensee remains employed by a sponsoring firm, company, or organization (NASAA, 2023). This means that the license is tied to the licensee’s employment and is not valid for independent practice.
Transition Period
If a licensee leaves their sponsoring firm or organization, the Series 66 license remains valid for two years (NASAA, 2023). During this transition period, the licensee can search for a new sponsoring entity without having to retake the exam. However, if the licensee fails to secure a new sponsor within the two-year period, the license will expire.
Co-requisite Exam
It is important to note that the Series 66 license is a co-requisite to the Series 7 exam (FINRA, 2023). This means that individuals seeking to obtain the Series 66 license must also pass the Series 7 exam, which is a more comprehensive securities industry qualification. Both exams are required for certain financial industry roles, such as financial advisors and investment bankers.
Conclusion
The Series 66 license is a valuable credential for financial services professionals seeking to provide financial advice and conduct securities transactions. Its validity is tied to the licensee’s employment and remains current as long as the licensee remains sponsored by a firm or organization. The two-year transition period provides licensees with flexibility in the event of job changes, while the co-requisite Series 7 exam ensures that licensees possess the necessary knowledge and skills for their roles.
References
FINRA. (2023). Series 66 – Uniform Combined State Law Exam. Retrieved from https://www.finra.org/registration-exams-ce/qualification-exams/series66
Key Facts
- License Validity: The Series 66 license remains current as long as you remain employed by a sponsoring firm, company, or organization.
- Transition Period: If you leave your position or company, your license will still be valid for two years as you search for a new job in the industry.
- Co-requisite Exam: The Series 66 exam is a co-requisite to the Series 7 exam, which means that you need to pass both exams to obtain the necessary licenses for certain financial industry roles.
NASAA. (2023). Exam FAQs. Retrieved from https://www.nasaa.org/exams/exam-faqs/
StateRequirement. (2024). What is the Series 66 License. Retrieved from https://staterequirement.com/securities-licensing/series-66-license/
FAQs
How long is the Series 66 license valid for?
The Series 66 license remains valid as long as the licensee remains employed by a sponsoring firm, company, or organization.
What happens if I leave my sponsoring firm or organization?
If you leave your sponsoring firm or organization, your Series 66 license will remain valid for two years while you search for a new sponsor.
Do I need to renew my Series 66 license?
No, the Series 66 license does not have an expiration date and does not require renewal.
Is the Series 66 license valid in all states?
The Series 66 license is a state-specific license, meaning it is only valid in the state in which it was issued.
Can I get a Series 66 license without a sponsor?
Yes, you can register for the Series 66 exam without a sponsor through FINRA’s Test Enrollment Services System (TESS).
How long do I have to pass the Series 66 exam after registering?
You have 120 days to take the Series 66 exam after registering.
What happens if I fail the Series 66 exam?
If you fail the Series 66 exam, you can retake it after a waiting period of 30 days for the first retake, 30 days for the second retake, and 180 days for subsequent retakes.
Is the Series 66 license a co-requisite to any other exams?
Yes, the Series 66 license is a co-requisite to the Series 7 exam, which is also required for certain financial industry roles.