Series 65: What It Is and How to Prepare
What is the Series 65?
The Series 65, officially the Uniform Investment Adviser Law Exam, is required for individuals who want to act as investment adviser representatives (IARs) in most U.S. states. It tests knowledge of investment vehicles, economics, portfolio strategies, laws and regulations, and ethical/fiduciary responsibilities necessary to give paid investment advice.
Who needs it
- Anyone who will provide investment advice for a fee and be registered (or registerable) as an IAR in their state.
- If you only give occasional, unpaid advice or do not regularly advise on securities, the Series 65 is generally not required.
- Passing the exam is necessary but not sufficient: you must also meet state registration/licensing requirements to act as an IAR.
Exam logistics and requirements
- Format: 130 multiple-choice questions.
- Time: 180 minutes.
- Passing score: 92 correct answers (70%).
- Fee: $187 per attempt.
- Sponsorship: Not required to sit for the exam. Firms can schedule exams for employees via Form U4; individuals use Form U10 to register.
- Testing center provisions: A basic four-function electronic calculator and dry-erase board are provided. No outside reference materials allowed.
- If you fail, you may retake after 30 days (additional fee required).
What the exam covers (content outline)
The exam is organized into four major topic areas with approximate weighting:
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- Economic Factors and Business Information (15% — ~20 questions)
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Monetary and fiscal policy, economic indicators, financial reporting, quantitative methods, risk concepts.
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Investment Vehicle Characteristics (25% — ~32 questions)
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Cash equivalents, fixed income and valuation methods, equities and valuation, pooled investments, derivatives, insurance-based products.
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Client Investment Recommendations and Strategies (30% — ~39 questions)
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Client profiling, portfolio management styles and techniques, capital market theory, retirement planning and tax considerations, ERISA issues, account types, trading and performance measurement.
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Laws, Regulations, and Guidelines; Prohibition on Unethical Practices (30% — ~39 questions)
- State and federal securities acts, rules for advisers and broker-dealers, fiduciary duties, communications, compensation, custody, and conflicts of interest.
Key practical limits of a Series 65 alone
- Holding the Series 65 permits you to give investment advice for a fee and act in a fiduciary capacity.
- It does not authorize you to sell securities or execute trades on behalf of clients. To sell securities or manage client accounts directly, you generally need additional FINRA licenses (commonly the Series 7).
Study strategy and preparation tips
- Typical preparation time: 50–70 hours, though this varies with background and memory skills.
- Focus on memorizing rules, regulations, and standard calculations; practice multiple-choice questions and timed mock exams.
- Concentrate study on the laws/ethics and client recommendation sections, which are heavily weighted and often challenging for those without securities experience.
- Use reputable prep courses, practice exams, and summary guides to reinforce weak areas.
How Series 65 compares with Series 63 and Series 66
- Series 63 (Uniform Securities Agent State Law Exam): Focuses on state securities laws and is typically required for agents who sell investment products (e.g., mutual funds, variable annuities).
- Series 66 (Combined State Law Exam): Merges content from Series 63 and 65. It is intended for those who want the combined state-law qualification but must be used with the FINRA Series 7 license (Series 66 is not a standalone alternative to Series 65 unless paired with Series 7).
- Series 7 (General Securities Representative): Allows the selling of most securities and is commonly required in addition to Series 65/66 if you will execute trades or sell products.
Common questions
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Does the license expire?
The Series 65 does not expire while you remain active in the industry. Employers may require retaking the exam after an absence (often two years) from the industry. -
Do I need a sponsor to take it?
No. Candidates may register independently. -
How much does it cost?
The exam fee is $187 per attempt. -
Can I become an IAR without the Series 65?
Yes — by passing Series 7 and Series 66 (requirements vary by state and role). -
Is the exam hard?
NASAA does not publish official pass rates; industry estimates put pass rates around 65–70%. Difficulty depends on background and preparation.
Bottom line
The Series 65 certifies the minimum knowledge required to advise clients for a fee and to act in a fiduciary role. It requires focused preparation on laws, ethics, investment products, and portfolio strategies. If you plan to sell securities or execute trades, expect to need additional FINRA licensing (commonly the Series 7).