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FINRA Series_63 Exam Overview:
| Certification Vendor: | FINRA / NASAA |
| Exam Name: | Uniform Securities Agent State Law Examination |
| Exam Number: | Series 63 |
| Certificate Validity Period: | Indefinite while active in industry; may be extended via EVEP |
| Passing Score: | 72% (43 out of 60 scored questions) |
| Available Languages: | English, Spanish |
| Related Certifications: | SIE Series 6 Series 7 Series 65 Series 66 |
| Real Exam Qty: | 65 (60 scored + 5 unscored pretest) |
| Exam Price: | $147 USD |
| Exam Format: | Computer-based, Multiple-choice (4 options) |
| Exam Duration: | 75 minutes |
| Recommended Training: | FINRA Study Resources NASAA Official Content Outline |
| Exam Registration: | FINRA Series 63 Page NASAA Exam Portal Prometric Scheduling |
| Sample Questions: | FINRA Series_63 Sample Questions |
| Exam Way: | In-person at Prometric test centers; online proctored option available in some regions |
| Pre Condition: | No mandatory prerequisites; often taken alongside SIE, Series 6 or Series 7; no firm sponsorship required for U10 registration |
| Official Syllabus URL: | https://www.finra.org/registration-exams-ce/qualification-exams/series63 |
FINRA Series_63 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Regulations of Broker-Dealers | 12% | - Supervision and compliance obligations - Exclusions and exemptions from registration - Registration and post-registration requirements - Definition and legal status |
| Topic 2: Regulations of Investment Advisers | 5% | - Recordkeeping and reporting rules - Registration and exemptions - Definition under Uniform Securities Act |
| Topic 3: Regulations of Agents of Broker-Dealers | 13% | - Termination and notice requirements - Registration procedures and Form U4 - Definition and scope of activities - Exemptions from registration |
| Topic 4: Ethical Practices and Fiduciary Obligations | 40% | - Advertising and communication rules - Prohibited business practices - Conflicts of interest and compensation - Handling of customer funds and securities - Anti-fraud provisions and misrepresentation - Customer suitability and disclosure |
| Topic 5: Regulations of Securities and Issuers | 10% | - Disclosure and anti-fraud requirements - Exempt securities and exempt transactions - Registration methods: coordination, qualification, filing - Definition of securities |
| Topic 6: Administrative Provisions and Remedies | 15% | - Civil and criminal liabilities - Powers of state securities administrators - Investigations, subpoenas, and orders - Judicial review and appeals |
| Topic 7: Regulations of Investment Adviser Representatives | 5% | - Exclusions and exemptions - Registration and post-registration duties - Definition and activities requiring registration |
FINRA Uniform Securities Agent State Law Examination Sample Questions:
1. To say a security is "exempt," means that
I. it is exempt from the state's anti-fraud laws.
II. it is exempt from state registration requirements.
III. any transaction involving it is considered to be an exempt transaction.
A) II only
B) I and II only
C) II and III only
D) I, II, and III
2. Don is a state-registered agent with GetErDone Broker-Dealers. He has three other friends who are
licensed agents-Huey, Dewey, and Louie. Huey is also an agent with GetErDone Broker-Dealers. Dewey
is an agent with a different firm in the same city, CanDo Broker-Dealers. Louie works for a Broker-Dealer
with an office just across the state line. Don can enter a commission-splitting agreement with
A) Huey only.
B) either Huey or Dewey or both
C) Either Huey, Dewey, or Louie or any combination of the three
D) Dewey only.
3. The Uniform Securities Act (USA) is
A) a body of laws governing the purchase and sale of securities within a single state.
B) a set of guidelines for individual states to follow when formulating their own securities' laws.
C) a group of laws requiring state-issued securities, such as municipal bonds, to be registered with
D) federal legislation that requires all states to adopt the same registration requirements for all
4. A variable annuity is:
A) a security, but is exempt from state registration.
B) a security and, therefore, has to be registered with the state before it can be offered for sale.
C) not a security and, therefore, does not have to be registered with the state.
D) not a security, but is still required to be registered with the state before it can be offered for sale.
5. Which of the following describes a prohibited practice in the sale of shares of investment companies?
I. Sandy Slacker hands her client the fund's prospectus and tells him that the prospectus will provide him
all that he needs to know about loads and fees associated with the fund.
II. Elliot Eager tells a client who has an investment objective that includes current income that a certain
bond fund has a current yield of 8% and provides the client with a prospectus so that the client can peruse
the average annual returns that the fund has generated in past years when the client has the time.
III. After explaining all the fees and loads involved in two different bond funds as well as the difference
between current yield and total return, Patty shows the client the data on the average annual returns that
the two bond funds provided. She explains to the client that the municipal bond fund has a lower yield
than the similar-risk corporate bond fund because the interest income the client will receive from the
municipal bond fund will be free from federal taxation, while the interest income on the corporate bond
fund is fully taxable.
A) All the choices describe prohibited practices in the sale of shares of investment companies.
B) I only
C) I and III only
D) I and II only
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: D |
By Morgan
