Wednesday, January 21, 2009

Series 65 or 66?

QUESTION: So, which test is easier, the Series 65 or Series 66? ANSWER: The Series 66 exam is 100 questions versus the Series 65 exam’s 130 questions. Shorter is easier, right? Not necessarily. First, the passing score for the Series 66 is 71%, while you only need a 68.5% to pass the Series 65. Second, the Series 66 is focused more heavily on rules and regulations, so if you don’t like a lot of long-winded questions on securities regulations, you’re in big trouble. Or, if you’re very comfortable on all the different types of securities, that won’t help you on the Series 66 much ,while it could make all the difference on the Series 65, with its 26 questions on “investment vehicles.” If you already have your Series 7, you can choose between the 65 or 66 exam. If you don’t and won’t have a Series 7, the Series 66 is simply not an option. Also, when I say “you can choose,” that implies that your firm says that you have a choice in the matter. I’m saying what can be done—your firm will tell you what can be done by employees of the firm. One interesting thing on this 65 vs. 66 issue is that there would be no mandatory 30-day wait between a failed Series 65 attempt and a Series 66 attempt. That means that if you already have your Series 7, you could study for the Series 65 knowing that if you don’t pass, you could then schedule a Series 66 exam as soon as you want to. But, of course, the best strategy is always to pass the Series 65 in one attempt. No one wants to go through the pressure of the exam center more than absolutely necessary.

32 comments:

  1. If I have a series 66 and series 7 but I no longer wish to work for a broker dealer do I need to take the series 65 in order to work for a fee investment advisor RIA?

    Mark

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  2. Hi, Mark.

    You would not need to take the 65 to work for an RIA. The states require either the Series 65 or the Series 66 and Series 7. You have the 66, and you passed the 7. Now, you would just U-5 out of the broker-dealer, and U-4 in as an IAR. Which state is this--might be good to see exactly how they phrase their requirements.

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  3. So just to clarify these points. If I have the 6/63 and want to take the 65, can I keep my 6 with my current BD and register my own Investment Advisory firm? In other words can I have the 6 and 65 and have them sponsored by a different BD and IA.

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  4. I don't see a problem from a regulatory standpoint. It looks like an issue between you and your B/D. They have to be notified of any outside employment, and they can tell their registered rep's not to do something, especially like starting an RIA. If your B/D is okay with it, the regulators would just want to make sure you're clear to clients when you're acting as an adviser and when you're a registered rep--are you getting 12b1 fees? That would have to be disclosed to advisory clients, for example. Your advisory business is outside the scope of your B/D employment, etc.

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  5. Would you change your views now based on the changes that they have made to the Series 66?
    Thanks

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  6. Hello.
    No, they changed the 65 as well. Added a few new items--or threatened to--and raised the passing score from 68.5% to 72%.
    Six of one, half dozen of the other.

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  7. I need advice. I have my 7 and my 63. Just took my 66 and failed with a 74...they just changed the passing score to 75 on the 66. Would you recommend taking the 65 now.

    I am brutal at rules and regulations getting about a 62percent on that portion of the exam....(50 q/s) and I received a 86percent (50 q/s) on the investments, customer recommendations and suitibility part of the exam.

    Does the 65 contain less rules and regs B.S.?? Thanks much appreciated

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  8. 74% is a good score on that test. I think you would probably pass the Series 66 on your next attempt, but I also think the Series 65 may be a better test for you, for the reasons you mention. There are 31 questions on investment vehicles. There are 40 questions on business practices and ethics. And, you don't have to wait 30 days to test. Get the Pass the 65 ExamCram Online at www.passthe65.com/exams.htm and maybe the textbook, too.

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  9. UPDATE: the passing scores are now 72% for the 65 and 75% for the 66.

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  10. I need some advice!! I failed my 65 three times.... I missed it today by three questions. I already have my 7, 6 and 63.... So instead of waiting for 180 days to take the 65 again can I take the 66? I am very good when it comes to rules and regs and have scored above 80 in that section each and every time. Any thoughts?

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  11. yes--no waiting time between 65 and 66. You should definitely just get the 66 . . . better than doing nothing for 6 months, right? Get the full package and maybe some tutoring. www.passthe66.com/fullpackage.htm

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  12. I had a series 6, 63, 65 and 7 license and got into trouble with FINRA. I had to leave the securities industry for a year. I want to start my own RIA but I now have not been registered for two years. Because one of those years was a forced hiatus, will I have to retake the series 65 exam or does the year suspension not count towards the two years of inactivity?

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  13. well . . . does that sound like a good excuse to offer the state securities regulators? The reason I should get a break here is because I was suspended? The issue here is not whether you'd need to take the exam--you would. The issue here is that you got in trouble with FINRA, which could lead to a denial of your RIA application. Form ADV asks: E. Has any self-regulatory organization or commodities exchange ever:
    (1) found you or any advisory affiliate to have made a false statement or omission? *
    (2) found you or any advisory affiliate to have been involved in a violation of its rules (other than a violation designated as a "minor rule violation" under a plan approved by the SEC)? *

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  14. I have a strong interest in the investment advisory area as a possible 2nd career option, and am considering starting some education on my own in order to better position me for a possible career in the industry and also get some additional education for my own investments. It would appear that without current sponsorship for the Series 7, my best option would be to move forward with both the Series 63 and 65 licenses versus the Series 66 license which requires the Series 7. Do you agree with that approach? Also, I'm a little confused as to why the Series 63/65 apparently do not require the Series 7 as a pre-requisite license, and the Series 66 does require the Series 7 licence as a pre-requisite. Could you please clarify ? Is one or the other license preferred by the industry? Thanks

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  15. good questions. If you wanted to get into the industry the fastest way, you would pass the Series 65 and join an adviser as an IAR. You could receive a % of assets, or an hourly rate, but no commissions on securities transactions. To earn commissions for selling mutual funds or executing trades, you need a Series 7 and a job with a broker-dealer. But, the Series 7 only works if you also take your State Law Exam, Series 63. So, you would end up taking 3 exams this way to first become an IAR and then a stockbroker/securities agent. The industry decided since many people want to work both sides of the business it would be easier to take the Series 7 and then the "combined" exam called the Series 66, which combines the Series 65 and Series 63 requirement into one test. So, for people hired by, say, Morgan Stanley, it's easiest to take the 7 and the 66. For an independent like you, the 65 will allow you to DO something immediately after passing it and getting registered, whereas the 66 would do NOTHING for you until you passed the Series 7. Nice and simple, just the way the regulators like it.

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  16. I currently have my Series 7, Series 63, and insurance. I would like to become more versatile in the business. Would there be an advantage to taking the 66 vs. taking the 65 at this point?

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  17. no advantage--passing either exam would allow you to register as an IAR or set up your own RIA.

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  18. Hi Mr. Walker... I have my series 6,63,7 and health and life. I have failed the 65 twice. I am running the chance of losing my job after failing the 65 the second time. I'm wondering if I were to be let go by my current employer, is there any way for me to continue to pursue either the 65 or 66 on my own? Or do I need to be appointed with someone? Also I know you would suggest taking the 65 over the 66... Do you have any classes that could possibly help with current concepts on the 65? I scored a 66% both times, and struggle with investment vehicles and investment suggestions. Any advice?

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  19. You can self-sponsor for either the Series 65 or Series 66. I think our full package is the best deal, or, at a minimum, the textbook and the ExamCram Online Test Prep. www.passthe65.com

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  20. Mr. Walker...I am currently studying for the Series 7 and really struggling! After I pass the 7 (hopefully), I need to take either the 65 or 66. I already have the 6, 63, & 26. I passed the 6,63,26 over 7 years ago. Being that I got thru those exams successfully, what would be your best recommendation for me to attempt...the Series 65 or 66??. Also, would the fact that I am taking the 7 beforehand help with one more than the other?...Or, maybe since I am finding the 7 difficult, I should pick one over the other?
    Thanks in advance!

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  21. Hi--the two exams (65/66) are equally difficult, but the 65 has more questions on investment vehicles, while the 66 has a few more on laws/regulatory concerns. The 66 has fewer questions, though I'm not sure that's an advantage. I've taken the two tests, and my scores are almost identical. Really high.

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  22. Hi Mr. Walker,
    I currently have my 7 & 63 so I have a choice for either the 65 or 66. Would there ever be a scenario where if I got the 66, somewhere down the road I would need to get the 65 (or vice-verse)?? I would hate to get the 66 and then, like 5 years from now, be told I need the 65 for some reason I am not aware of. Thank you for taking my question.

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    1. Just stay active--don't leave the industry for over 2 years, and don't trust a firm to "keep your license for you." If you stay registered, you will not have to take an exam again.

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    2. of course, the way you phrase the question, I'd have to be able to see 5 years into the future. ;) I can't think of any precedent where FINRA/NASAA have changed their mind like that. It wouldn't make sense, since the exams (7/66, 65) lead to the same thing, be able to register in the advisory industry.

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  23. Hi,

    I have the 7, 63, and 55 but am looking to move to Colorado and run managed accounts for friends and family... it sounds like I'll be considered an IA so I'll need the 65 or 66... the 63 and 55 don't combine to equal the 65 or 66, right? It sounds like the 65 is better suited for me... if I register as an IA, do I get to keep all 4 of my licenses as long as I'm registered (and up to 2 years after I'm not)?

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  24. Hi Mr. Walker,
    Any promotion on the full package right now? Coupon??

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  26. When is the next time you can take the Series 66? If it's not more than a month away, I would take it one last time, after a few tutoring sessions. www.passthe66.com/tutoring.htm

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  27. rather than wait until July, you could take the Series 65. But, do you also have to take the Series 63, then?

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  28. Hey Mr.Walker, I currently have a series 7, 63, and 6. I am good with investment and doesn't like rules and regulation. I think series 65 would be more suitable for me, but would like your confirmation. Thanks

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