Loading the player...

What is the 'Series 63'

The Series 63 is a securities license entitling the holder to solicit orders for any type of security in a particular state. Securities agents must acquire the Series 63 license, in addition to a Series 7 or Series 6 license, to sell securities. To obtain a Series 63 license, the applicant must pass an exam and possess knowledge of ethical practices and fiduciary obligations.

BREAKING DOWN 'Series 63'

The Series 63 (known as the Uniform Securities Agent State Law Examination) is a registered exam that is required of all prospective registered representatives in most of the U.S. states. The exam was developed to qualify candidates who want to work in the securities industry within a state and to sell investment products, such as mutual funds, variable annuities and unit investment trusts. The exam covers the principles of state securities regulations. Each state has its own securities regulations, called blue-sky laws, that were developed to regulate the sale of securities.

The Series 63 Exam Format

The Financial Industry Regulatory Authority (FINRA) administers the Series 63 exam. There are 65 multiple-choice questions on the exam; 60 questions are used for the final score, while the other five questions are used for pretesting into the question bank. The passing score is 72%, or 43 of the 60 questions. The candidate must complete the exam within the allotted time of 75 minutes. As of 2016, it costs $125 to take the exam.

The North American Securities Administrators Association (NASAA) developed the exam along with representatives of the securities industry. Candidates for the exam need to be familiar with the Uniform Securities Act of 1956 and the NASAA Statement of Policy and Model Rules. The Series 63 is an entry-level exam; there are no prerequisites for the exam after completing the Form U-10.

Topics Covered on the Exam

The Series 63 exam covers the principles of state securities regulations and rules prohibiting dishonest or unethical practices. Sixty percent of the questions pertain to state and federal securities acts and rules, and 40% of the questions pertain to ethical practices and business obligations.

The topics on the exam include registration of persons, regulation of securities, business practices, communication with clients, and fiduciary responsibility with client funds and securities.

After successfully completing the Series 63 exam, the representative is eligible to take the Series 7 and Series 6 license exams. To sell securities, broker-dealers must obtain the Series 63 license as well as the Series 7 or Series 6.

RELATED TERMS
  1. Series 7

    A general securities registered representative license administered ...
  2. Series 66

    An exam administered by the Financial Industry Regulatory Authority ...
  3. Series 65

    A securities license required by most U.S. states for individuals ...
  4. Series 24

    A securities license entitling the holder to supervise and manage ...
  5. Series 28

    The Series 28 is an exam for professionals seeking become licensed ...
  6. Series 4

    The Series 4 is an exam and securities license entitling the ...
Related Articles
  1. Financial Advisor

    Breaking Down Financial Securities Licenses

    Find out which exam you need to begin your career as an investment professional.
  2. Financial Advisor

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
  3. Financial Advisor

    Introduction to the Series 65 exam

    The Series 65 is required in many states in order to be a fee-based advisor. Find out what it is and whether you need it.
  4. Personal Finance

    CFA Vs. Series 7: Which is Easier

    Find out which is exam is easier: The Chartered Financial Analyst (CFA) exam, or the Series 7 securities exam for registered representatives.
  5. Financial Advisor

    Series 65 Exam Prep: The Investment Advisor

    Before you take the series 65, you need to understand who is an investment advisor as defined by the exam.
  6. Insights

    FINRA Files Plans to Change Series 7 and Other Exams

    New details have emerged on the Securities Industry Essentials Exam required for becoming a registered representative.
  7. Financial Advisor

    Series 7 Exam Prep: Options

    One of the most challenging topics in the series 7 exam is options. Find out what you need to know before you take the test.
  8. Personal Finance

    Prepare For Your CFA Exams

    Find out how to get yourself ready for these lengthy and often daunting exams.
  9. Personal Finance

    How to Ace the CFA Level I Exam

    Prepare to ace the CFA Level 1 exam by studying systematically.
  10. Personal Finance

    What to Expect on the CFA Level I Exam

    The Level I exam for the Chartered Financial Analyst designation can be challenging. Here's what to expect.
RELATED FAQS
  1. The FINRA Series 6 and Series 7 exams: The differences

    Learn about the regulatory exams needed to become a registered representative and the main differences between the Financial ... Read Answer >>
  2. What certification series does one need to be a bond broker?

    One major requirement before one can become a bond broker is to pass the General Securities Representative Exam, commonly ... Read Answer >>
  3. Do I have to be a U.S. citizen to sit for the Series 63 exam?

    Learn more about the citizenship requirements for the Series 63 exam, what the exam material covers and what a passing score ... Read Answer >>
  4. What are my options if I fail my Series 63 exam?

    Find out what options are available to a person who has failed the Series 63 exam, a test that many states require for licensing ... Read Answer >>
  5. Do financial advisors have to be licensed?

    Understand why all financial advisors have to be licensed, and identify the specific licenses you must obtain to carry out ... Read Answer >>
Hot Definitions
  1. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  2. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  3. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  4. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
  5. Interest Coverage Ratio

    The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest ...
  6. Cash Conversion Cycle - CCC

    Cash conversion cycle (CCC) is a metric that expresses the length of time, in days, that it takes for a company to convert ...
Trading Center