Increase Your Pass Rate | Decrease Your Study Time
Cart 0
Increase Your Pass Rate | Decrease Your Study Time
Cart 0

Series 65 Exam Details: Facts and Info

The Series 65 exam is known as the Uniform Investment Adviser Law Exam and is a test taken by those who wish to become licensed Investment Adviser Representatives (IAR’s). The exam covers topics necessary to provide investment security advice to clients for a fee versus being able to receive commissions by passing the Series 7 Exam and Series 66 Exams.  The Uniform Investment Adviser Law Exam was developed by the North American Securities Administrators Association (NASAA) and is administered by the Financial Industry Regulatory Authority (FINRA).  FINRA is a private, non-governmental organization that regulates member brokerage firms and exchange markets and is the largest independent regulator for all securities firms doing business in America.  NASAA is a voluntary association of state securities administrators who take responsibility to protect consumers who purchase securities and/or securities investment advice from registered financial professionals.

 

THE EXAM

Each Series 65 Exam contains a total of 140 questions, 130 questions plus 10 sample questions that do not factor into the test score.  The sample questions are unidentifiable and will be placed at random throughout the Series 65 Exam.  The extra 10 sample questions are there because NASAA is trying to determine if the questions are too difficult or too easy for future exam use.  If they fit in, they’re added to the data bank, but the proper weighting of questions from each topic stays the same.

Applicants have 3 hours to complete the exam and must answer at least 94 (72.3%) of the questions correctly to pass.  There are no prerequisites to take the Series 65 Exam, but there is a non-refundable application cost of $175.  Currently, there are no continuing education requirements upon passing.  Neither FINRA or the NASAA publish the exam pass rates.

The Uniform Investment Adviser Law Exam is assembled by FINRA.  Each question in the question pool has two parameters that are used as part of the exam, a difficulty measure and a content measure. Each exam is assembled to meet the exam specifications for content and to have the same difficulty level as all other exams in the same Series.  NASAA creates all the test questions with FINRA to administer the exams through Prometric Testing Center locations throughout the country.  Typically, NASAA reviews the data bank and creates new and revised questions based on changes in law, such as the recently enacted SECURE Act. The questions are then entered into the database on a trial basis.  At the time of this writing, the questions on the Series 65 Exam reflect laws as of the end of 2019.  NASAA will provide any necessary updates when the exam content changes to reflect any updates.

The exam is a closed book test taken on a computer. On completion of the exam the candidate will be notified whether or not they passed.  Note, that the paperwork received at the testing center for a passing score is not a certificate and doesn’t allow you to conduct business as a financial advisor.  Each state has its own registration requirements that must be met before you can start as an Investment Advisor Representative. Your record of passing the exam is also kept by FINRA’s Central Registration Depository (CRD) system for two years. Keep a copy of your score sheet for your own records.  

If you fail the Series 65 Exam on your 1st or 2nd attempt you must wait a minimum of 30 days before taking another exam and a minimum of 180 days after failing the exam for a 3rd time before your 4th attempt.  There is no limit to the number of times you take the exam, but must wait at least 6 months for each failure after your 3rd attempt.  If you failed the Series 66 Exam you can take the Series 65 Exam as soon as your application is processed and your 120 day window is set. The waiting period applies only to the specific exam you failed.

 

REGISTRATION

After passing the Series 65 Exam you will need to pay an application and an annual registration fee to the necessary State(s), file a Form ADV disclosure form, and receive confirmation from the state regarding your registration being effective.  State registrations expire December 31st of every year.  IAR's must generally complete the Series 65 Exam unless they meet the exam waiver requirement by holding one or more of the following pre-qualifying designations:

  • Certified Financial Planner (CFP)
  • Chartered Financial Consultant (ChFC)
  • Personal Financial Specialist (PFS)
  • Chartered Financial Analyst (CFA)
  • Chartered Investment Counselor (CIC)

If you’re with a FINRA firm a Form U-4 will be filed with FINRA.  If you’re an individual without a sponsor you complete a Form U-10 which is meant for individuals not employed or associated with FINRA firms who have been required by another regulatory authority to qualify by examination.  You would fill in “Not Applicable” when Form U-10 requests a sponsor and send it to FINRA with the appropriate fee. You can also file the Form U-10 or Form U-4 online on the FINRA website.

After FINRA processes your payment you will be recorded in the testing system and given a 120 day window to study and take the exam which can’t be extended unless you have been sick or injured.  It doesn’t take long after FINRA receives your documents to process them and you are sent a confirmation. Once you’re in the system you can schedule a testing date with Prometric at one of their many location around the country.  You may call to set up the exam or sign up on the FINRA website.  Typically, you should be able to schedule an exam within a few days, if you wish.  For those who would like to do a “dry-run” of the exam at the location, Prometric allows testers to sign up for a “Test Drive” which allows a person to take a generic sample test and go through the sign in procedures on location.  Cost is $30.

You have two years to become registered in at least one state after passing the Series 65 Exam, otherwise the passing score expires. Once you are registered, the exam remains effective as long as you stay registered. If you quit your firm, the compliance officer files a Form U-5 showing your end of employment and with that the state registration terminates as well. You will then have two years to be re-registered at another firm, otherwise the exam will show as “expired” in the Central Registration Depository (CRD) and you will have to sit for the exam again.  States will often have the discretion to waive the requirement to retake the exam if you are working in a state that does not require Investment Adviser Representatives to be registered.  This may require a statement of your duties from your firm.  Additionally, even if you work in a state that does not require the registration of IAR’s, an investment adviser firm may still require it.