Uniform Combined State Law Examination
The Series 66 exam combines the content of the Series 63 (Uniform Securities Agent State Law) and Series 65 (Uniform Investment Adviser Law) into a single examination. It qualifies individuals to act as both securities agents and investment adviser representatives at the state level. The Series 66 requires the Series 7 as a co-requisite -- you must pass or have passed the Series 7 to have your Series 66 registration become effective. This exam is the most efficient path for professionals who need dual agent and adviser registrations.
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Practice Questions
Test your knowledge with these Series 66-style questions. Click an answer to check if you are correct.
1. Under the Uniform Securities Act, the state Administrator may issue a cease and desist order:
Correct: C. The Administrator has the authority to issue cease and desist orders without prior notice or hearing when it is in the public interest and there is reason to believe a violation has occurred or is about to occur. This is a summary action designed to provide immediate protection. Denial, suspension, or revocation of registration, however, requires notice and opportunity for hearing.
2. An investment adviser representative wants to share in the profits and losses of a client's account. Under what conditions is this permitted?
Correct: B. An IAR may share in the profits and losses of a client's account provided that the sharing is proportionate to the IAR's capital contribution and the client provides written consent. Disproportionate sharing arrangements create conflicts of interest and are prohibited.
3. Which of the following is an exempt transaction under the Uniform Securities Act?
Correct: B. An isolated non-issuer transaction (an infrequent, non-recurring transaction between private parties where the issuer does not receive proceeds) is exempt from registration under the Uniform Securities Act. This exempts the transaction but not the security itself -- antifraud provisions still apply.
4. An investment adviser with custody of client assets must:
Correct: C. Under the custody rule, investment advisers who have custody of client funds or securities must undergo an annual surprise examination conducted by an independent public accountant to verify client assets. This protects clients from potential misappropriation. The adviser must also maintain client assets with a qualified custodian and provide clients with account statements.
5. A federal covered adviser is required to do which of the following at the state level?
Correct: B. Under the National Securities Markets Improvement Act (NSMIA), federal covered advisers (those registered with the SEC, typically with $100 million or more in AUM) are not required to register with states, but they must file notice filings and pay applicable fees. States retain the authority to enforce antifraud provisions and require notice filings, but cannot impose additional registration requirements on federal covered advisers.
Related Exams
The Series 66 combines content from these exams and requires the Series 7 as a co-requisite.
General Securities Representative
Required co-requisite for the Series 66. The Series 7 qualifies you to sell a broad range of securities products and is a prerequisite for your Series 66 registration to become effective.
Uniform Investment Adviser Law
An alternative to the Series 66 if you only need investment adviser registration and do not need agent registration. Does not require the Series 7 as a co-requisite.