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FINRA Series63 Exam Overview:
| Certification Vendor: | FINRA |
|---|---|
| Exam Name: | Uniform Securities Agent State Law Examination |
| Exam Number: | Series 63 |
| Certificate Validity Period: | Indefinite (subject to state registration and regulatory requirements) |
| Exam Duration: | 75 minutes |
| Available Languages: | English |
| Related Certifications: | Series 66 Series 6 Series 7 |
| Passing Score: | 72% (43 out of 60 questions) |
| Real Exam Qty: | 60 scored multiple-choice questions |
| Exam Format: | Computer-based exam, Multiple-choice |
| Exam Price: | $147 USD |
| Recommended Training: | Securities Training Corporation (STC) - Series 63 Kaplan Financial Education - Series 63 |
| Exam Registration: | FINRA Series 63 Exam Registration |
| Sample Questions: | FINRA Series63 Sample Questions |
| Exam Way: | Computer-based, proctored at authorized testing centers (Prometric) |
| Pre Condition: | No formal prerequisite, but typically taken alongside or after Series 6 or Series 7 for state registration purposes |
| Official Syllabus URL: | https://www.finra.org/registration-exams-ce/qualification-exams/series63 |
FINRA Series63 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Regulation of Investment Advisers and Agents | - Broker-dealer regulation and supervision - Registration requirements for agents |
| Ethical Practices and Fiduciary Responsibilities | - Prohibited practices and fraud prevention - Disclosure obligations and client protection |
| Administrative Provisions and Enforcement | - State enforcement powers and penalties - Recordkeeping and reporting requirements |
| State Securities Acts and Regulations | - Registration of securities and exemptions - Uniform Securities Act (USA) framework |
FINRA Uniform Securities Agent State Law Examination Sample Questions:
Which of the following documents must a broker-dealer deliver on or prior to the confirmation due date to a client who is purchasing a security?
- A. a final prospectus
- B. a preliminary prospectus
- C. a hypothecation agreement
- D. a margin agreement if the purchase is being made on margin
Correct Answer: A 🗳️
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Desi Genuos is an agent with Broker-Dealer CanDo. A client has asked Desi to recommend a mutual fund that does not have a sales charge. Desi recommends a fund that has no front-end load although it does have a deferred sales load if the investor redeems his shares within the first three years of ownership, but the client has informed Desi that he is looking at this as a long-term investment. Based on these facts, Desi
- A. will not be in violation of any NASAA rules as long as he has his client sign a "letter of intent."
- B. is not in violation of any rules since the fund has no front-end load and the deferred sales load will not apply to this client, given his indication that this is meant to be a long-term investment.
- C. is not in violation of any rules because he is an agent of a broker-dealer and is not affiliated with the fund he has recommended in any manner.
- D. is in violation of NASAA rules regarding investment company shares.
Correct Answer: D 🗳️
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Which of the following compensation arrangements between an investment adviser and an individual client with a net worth of $600,000 would be disallowed?
- A. All of the above are legitimate compensation arrangements between and investment adviser and an individual client with a net worth of $600,000.
- B. The investment adviser will receive 0.1% of the total value of the client's assets under management as of the end of each month.
- C. The investment adviser will receive 0.1% of the gross capital gains earned on the portfolio each quarter.
- D. The client agrees to pay the investment adviser an hourly fee of $60.00.
Correct Answer: C 🗳️
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MoeMoney Investment Advisers uses the services of two broker-dealers exclusively when it executes trades for its clients' accounts. The larger of the two broker-dealers provides MoeMoney with research from its analyst department in return for the business and also serves as the custodian for some of MoeMoney's clients' accounts. The smaller of the two broker-dealers picks up the utility bill for MoeMoney. MoeMoney is careful to disclose this form of "soft dollar" compensation to its clients.
Is it in violation of any securities laws?
- A. Yes. Although investment advisers are permitted to receive some forms of soft dollar compensation from broker-dealers with which it has a relationship, such as research or custodial services, other forms of soft dollar compensation, including the payment of overhead expenses,are prohibited.
- B. No. Investment advisers are entitled to receive soft dollar compensation from broker-dealers with which it has a relationship as long as they disclose this to their clients.
- C. Yes. Investment advisers are prohibited from receiving any soft dollar compensation whatsoever.
- D. Yes. Investment advisers are required to use more than two broker-dealers when executing trades on its clients' accounts.
Correct Answer: A 🗳️
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Alter Advisers & Associates is a small investment adviser partnership registered only in a single state. One of the partners has died, and the surviving spouse has sold that partnership interest to the surviving partners.
Which of the following statements are true?
I. Alter Advisers must inform the state Administrator of this event.
II. Alter Advisers must inform the SEC of this event.
III. Alter Advisers must notify the firm's clients of this event.
- A. I only
- B. I and III only
- C. I and II only
- D. I, II, and III
Correct Answer: B 🗳️
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By Clark
