The Series 63 is a securities exam and license that entitles the holder to solicit orders for any type of security in a particular state (SmartAsset, 2023). It is designed to ensure that individuals working in the securities industry have the necessary knowledge and ethical understanding to protect investors.
Key Facts
- Definition: The Series 63 is a securities exam and license that allows individuals to solicit orders for any type of security in a particular state.
- Licensing Requirement: To obtain a Series 63 license, individuals must pass the Series 63 exam, which tests their knowledge of ethical practices and fiduciary obligations.
- Scope: The Series 63 license is required by most U.S. states for individuals who want to work in the securities industry within a state and sell investment products such as mutual funds, variable annuities, and unit investment trusts.
- Exam Format: The Series 63 exam consists of 60 multiple-choice questions, and the passing score is 72% or 43 out of 60 questions. The exam must be completed within 75 minutes.
- Exam Topics: The Series 63 exam covers the principles of state securities regulations, rules prohibiting dishonest or unethical practices, administrative provisions, customer communication, and ethical practices and business obligations.
- Additional Licensing: In addition to the Series 63 license, individuals may also need to obtain a Series 7 or Series 6 license to sell securities.
Licensing Requirement
To obtain a Series 63 license, individuals must pass the Series 63 exam, which tests their knowledge of ethical practices and fiduciary obligations (Investopedia, n.d.). The exam is administered by the Financial Industry Regulatory Authority (FINRA) and covers topics such as state securities regulations, customer communication, and ethical practices.
Scope
The Series 63 license is required by most U.S. states for individuals who want to work in the securities industry within a state and sell investment products such as mutual funds, variable annuities, and unit investment trusts (SmartAsset, 2023). However, some states, including Colorado, Florida, Louisiana, Maryland, Ohio, the District of Columbia, and Puerto Rico, do not require the Series 63 license (Investopedia, n.d.).
Exam Format
The Series 63 exam consists of 60 multiple-choice questions, and the passing score is 72% or 43 out of 60 questions (FINRA, n.d.). The exam must be completed within 75 minutes.
Exam Topics
The Series 63 exam covers a wide range of topics, including:
- Principles of state securities regulations
- Rules prohibiting dishonest or unethical practices
- Administrative provisions
- Customer communication
- Ethical practices and business obligations (SmartAsset, 2023)
Additional Licensing
In addition to the Series 63 license, individuals may also need to obtain a Series 7 or Series 6 license to sell securities. The Series 7 license allows individuals to sell all types of securities except commodities and futures, while the Series 6 license allows individuals to sell mutual funds, variable annuities, and insurance (SmartAsset, 2023).
Conclusion
The Series 63 license is an essential requirement for individuals who want to work in the securities industry within most U.S. states. The exam covers a wide range of topics related to ethical practices and state securities regulations. By obtaining the Series 63 license, individuals demonstrate their commitment to protecting investors and upholding the highest ethical standards in the financial industry.
References
- FINRA. (n.d.). Series 63 – Uniform Securities Agent State Law Exam. Retrieved from https://www.finra.org/registration-exams-ce/qualification-exams/series63
- Investopedia. (n.d.). Series 63: Definition, Requirements, How to Pass, and Difficulty. Retrieved from https://www.investopedia.com/terms/s/series63.asp
- SmartAsset. (2023, January 28). Series 63: Definition and Exam Information. Retrieved from https://smartasset.com/financial-advisor/series-63
FAQs
What can I do with a Series 63 license?
1. Can I sell securities with a Series 63 license?
Yes, the Series 63 license allows you to solicit orders for any type of security in a particular state.
2. What types of securities can I sell with a Series 63 license?
You can sell mutual funds, variable annuities, and unit investment trusts.
3. Do I need any other licenses to sell securities?
In addition to the Series 63 license, you may also need to obtain a Series 7 or Series 6 license, depending on the types of securities you want to sell.
4. What states require the Series 63 license?
Most U.S. states require the Series 63 license for individuals who want to sell securities within the state. However, some states, including Colorado, Florida, Louisiana, Maryland, Ohio, the District of Columbia, and Puerto Rico, do not require the Series 63 license.
5. What is the passing score for the Series 63 exam?
The passing score for the Series 63 exam is 72%, or 43 out of 60 questions.
6. How long does it take to get a Series 63 license?
The time it takes to get a Series 63 license varies depending on how long it takes you to prepare for and pass the exam. However, you can generally expect to spend several months studying for the exam.
7. How much does it cost to get a Series 63 license?
The cost of getting a Series 63 license varies depending on the state in which you are applying. However, you can generally expect to pay around $200-$300 for the exam and application fees.
8. What are the benefits of getting a Series 63 license?
Getting a Series 63 license can provide you with several benefits, including:
– Increased job opportunities
– Higher earning potential
– Greater credibility and trust from clients