Series 63

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Series 63: Definition, Requirements, Topics, and How It Compares to Other Securities Exams

What the Series 63 Is

The Series 63 (Uniform Securities Agent State Law Examination) tests knowledge of state securities laws—often called “blue sky laws”—and ethical practices for securities representatives. Developed by NASAA and administered by FINRA, the exam ensures agents understand state-level rules that complement federal securities regulation and help protect investors.

Why it matters
– Most U.S. states require passing the Series 63 for registration as a securities agent.
– It’s commonly taken in addition to a product-focused license (Series 6 or Series 7).
– It focuses on state registration, fraud prevention, fiduciary duties, communications, and ethical obligations rather than detailed product knowledge.

Who may not need it
– Some jurisdictions do not require the Series 63 for registration: Colorado, Florida, Louisiana, Maryland, the District of Columbia, and Puerto Rico. Firms, however, may still require it as an internal compliance matter.

Exam format and scoring
– Total questions delivered: 65 multiple-choice (4 options each).
– Scored questions: 60; unscored pretest questions: 5.
– Time limit: 75 minutes.
– Passing score: 43 of 60 correct (72%).
– Test construction: each exam is assembled from a large question pool in real time to meet content specifications; questions are fixed in order once the exam begins.

How to register and fees
– Employed by a broker-dealer: your firm files Form U4 electronically to sponsor you.
– Not employed by a FINRA member: you can enroll and schedule the exam directly through FINRA (exam fee applies; check FINRA for current fee amounts).

Retake and validity rules
– Retake waiting periods:
* After first fail: minimum 30 days before second attempt.
* After second fail: minimum 30 days before third attempt.
* After third (and subsequent) fails: minimum 180 days before next attempt.
– After passing: you typically have two years to obtain state registration before the exam result expires in FINRA’s Central Registration Depository (CRD).
– If you leave a firm, Form U5 cancels registration; you generally have a two-year window to find new sponsorship and re-register using Form U4.

Exam content and weightings
The Series 63 covers eight topic areas. Below are the subject headings with approximate weight and the typical number of scored questions.

  1. Ethical Practices and Obligations
  2. Weight: 25% — ~15 questions

  3. Topics: fees, commissions, markups, disclosure of compensation, custody, discretion, trading authorization, excessive trading, loans with customers, insider trading, market manipulation, protection of vulnerable investors.

  4. Communication with Customers and Prospects

  5. Weight: 20% — ~12 questions

  6. Topics: required disclosures to clients/prospects, prohibited statements (e.g., guarantees), customer agreements (new account, margin, options), rules for social media and electronic communications.

  7. Regulations of Agents of Broker-Dealers

  8. Weight: 13% — ~8 questions

  9. Topics: definition of an agent, registration and post-registration obligations, activities requiring registration, Form U4 updates, supervision.

  10. Regulation of Broker-Dealers

  11. Weight: 12% — ~7 questions

  12. Topics: broker-dealer definition, registration requirements (e.g., Form BD), exemptions, supervision responsibilities.

  13. Remedies and Administrative Provisions

  14. Weight: 11% — ~7 questions

  15. Topics: powers/duties of state regulators, administrative actions (cease-and-desist, license revocation), penalties, SIPC scope.

  16. Regulations of Securities and Issuers

  17. Weight: 9% — ~5 questions

  18. Topics: what qualifies as a security, issuer definitions, state registration requirements and exemptions, enforcement against fraud.

  19. Regulation of Investment Adviser Representatives

  20. Weight: 5% — ~3 questions

  21. Topics: who is an IAR, registration requirements and exclusions.

  22. Regulation of Investment Advisers

  23. Weight: 5% — ~3 questions
  24. Topics: who qualifies as an investment adviser, activities requiring adviser registration and applicable exemptions.

Series 63 vs. Other Exams

  • Series 7: Broad, product-focused federal exam for general securities representatives. Typically more comprehensive and considered more difficult than Series 63. Many candidates take Series 7 first, then Series 63 to meet state requirements.
  • Series 6: Limited to mutual funds and variable products; often paired with Series 63 for state registration.
  • Series 65: Focuses on investment adviser laws and practices; used by those seeking to act as investment advisers.
  • Series 66: Combines content from Series 63 and Series 65; intended for candidates who need both securities agent and adviser qualifications (often taken after Series 7).

Which exam to take first
– If you aim for a broad sales role: Series 7 first (covers a wide range of products), then Series 63 for state-level compliance.
– If focusing on mutual funds/variable products: Series 6 plus Series 63 is a common path.
– If you want both agent and adviser credentials and meet prerequisites, Series 66 can consolidate state-law content.

Common questions
– Are there age or education requirements? Minimum age is typically 18; there are no formal education prerequisites to sit for the exam.
– Can I sell securities without the Series 63? In most states, no—you must satisfy state registration requirements, which usually include Series 63 plus a product license (Series 6/7). Check state rules; some states listed above don’t require it, but firms may still insist on it.
– Which Series exam is hardest? The Series 7 is widely regarded as the most challenging because of scope and detail.

Bottom line

The Series 63 is a targeted, state-law-focused exam designed to ensure securities agents understand state securities acts, ethical obligations, and investor-protection rules. It’s usually required in addition to a product license (Series 6 or 7) and is a key piece of the regulatory framework that governs how securities are offered and sold across state lines. Preparation should emphasize state registration rules, prohibited practices, communications, fiduciary duties, and common administrative remedies.