The Series 65 exam qualifies investment advisers to provide investment advice and services for a fee. It consists of 140 questions, with 130 graded questions needed to pass. Passing the exam is the first step in becoming licensed to work as an Investment Advisor Representative.
The Series 65 is an exam given to investment advisers which, if passed, qualifies them to provide investment advice and services to the public for a fee. Its official title is the Uniform Investment Adviser Law Examination. These exams, which were developed by the North American Securities Administrators Association (NASAA) and are used in the United States and other countries, are administered by the Financial Industry Regulatory Authority (FINRA).
The Series 65 exam consists of 140 questions, of which 130 have value to pass the exam successfully and 10 have no value to pass the exam. The 10 excess questions are mixed up and cannot be distinguished from the other questions. Candidates are allotted up to 180 minutes to complete the test. A successful candidate will answer at least 94 questions correctly out of the 130 graded questions, earning a score of at least 72 percent correct. An unsuccessful candidate may request to retest after a 30-day waiting period.
For each exam, questions are selected from a pool of possible questions that have been graded for content and difficulty. Exams are compiled to produce equivalent tests with the same level of difficulty, regardless of the specific questions they contain. The questions cover a wide range of topics, including ethics, securities regulations, types of securities, and trading options. The questions are updated annually to incorporate regulatory changes and updates.
An investment firm or brokerage may apply on behalf of a candidate for that person to take the exam, or an individual may apply directly. A sponsor is not required for the Series 65 exam. Computer-based exams are offered regularly at test centers across the US and several other countries. After an application has been processed, the candidate will be notified of a 120-day period in which he must take the exam.
Passing the Series 65 exam is the first step in becoming licensed to work as an Investment Advisor Representative (IAR). After passing the exam, the individual must apply to the state or region for the license. In addition to the exam, governments sometimes require a background or bond check before qualifying an individual for a license.
Individuals who have passed and been licensed on both the Series 7, or General Securities Representative Examination, and Series 66, or the Combined Uniform State Law Examination, are also not required to take the Series 65 exam. in most circumstances. Depending on the regulations of an individual locality, a person who holds certification as a Certified Financial Analyst, Certified Financial Planner, Personal Financial Specialist, or Licensed Investment Advisor may qualify for a license without completing a Series 65 exam. of these professional designations, the individual must meet all other licensing requirements.
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