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FINRA Series63 Exam Overview:
| Certification Vendor: | North American Securities Administrators Association (NASAA) / FINRA |
|---|---|
| Exam Name: | Uniform Securities Agent State Law Examination |
| Exam Number: | Series 63 |
| Exam Format: | Multiple Choice |
| Related Certifications: | Series 6 Series 66 Series 7 SIE (Securities Industry Essentials) |
| Exam Duration: | 75 minutes |
| Real Exam Qty: | 60 scored + 5 unscored pretest |
| Passing Score: | 43 out of 60 (72%) |
| Available Languages: | English |
| Exam Price: | USD 147 |
| Certificate Validity Period: | Valid while registered; score generally valid for ~2 years if not employed |
| Sample Questions: | FINRA Series63 Sample Questions |
| Exam Way: | Administered at Prometric testing centers (computer-based), closed-book with supervised proctor. |
| Pre Condition: | No formal prerequisites; often taken with SIE and a representative-level exam (e.g., Series 7 or Series 6) for full securities registration. |
| Official Syllabus URL: | https://www.finra.org/registration-exams-ce/qualification-exams/series63 |
FINRA Series63 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Ethical Practices and Obligations | 25% | - Fraudulent and unethical conduct - Conflicts of interest and fiduciary duties |
| Topic 2: Regulations of Securities and Issuers | 9% | - Issuer regulation principles - Securities registration and exemptions |
| Topic 3: Regulation of Investment Advisers | 5% | - Federal vs state adviser regulation - Investment adviser registration rules |
| Topic 4: Regulation of Broker-Dealer Agents | 13% | - Associated person regulations - Agent registration requirements |
| Topic 5: Remedies and Administrative Provisions | 9% | - State Administrator authority - Enforcement and penalties |
| Topic 6: Regulation of Broker-Dealers | 12% | - Broker-dealer regulatory requirements - Federal and state registration standards |
| Topic 7: Regulation of Investment Adviser Representatives | 5% | - Recordkeeping and contract standards - IAR registration and obligations |
| Topic 8: Communication with Customers and Prospects | 20% | - Disclosure requirements - Advertising and correspondence rules |
FINRA Uniform Securities Agent State Law Examination Sample Questions:
Question 1
Trevor is currently a registered agent in the state of Connecticut where he has been employed by Connect & Company, a broker-dealer that is registered in Connecticut and has subsidiary operations in Massachusetts, New Jersey, and New York. Trevor has moved to Massachusetts and is now associated with one of Connect's subsidiaries, a broker-dealer registered in the state. Trevor has applied to the Administrator of Massachusetts for registration as an agent.
Can Trevor execute purchases and sales for clients while his registration is still pending?
A. It depends. Trevor can execute some purchases and sales, but only for clients that he already had who may have recently relocated to Massachusetts and only for sixty days while his registration is pending.
B. Yes. Because Trevor is a registered agent in another state and is affiliated with a broker-dealer that is registered in the state of Massachusetts, he is not restricted from executing trades.
C. No. Until he is informed by the Administrator of Massachusetts that his application has been accepted, Trevor may not affect any securities transactions in Massachusetts.
D. Yes. Trevor can execute trades for new clients he solicits, but only for sixty days while his registration is pending.
Question 2
While on vacation in Colorado, Mr. Moneybags became interested in the stock of a company called SafeAway, which designs and installs customized high-tech security systems in the multimillion dollar mansions located in Colorado's pricier ski resort areas, such as Vail and Aspen. Upon returning to his home in Boston, he calls his broker-dealer with an order to purchase 10,000 shares of the stock, which he learned trades in the over-the-counter market. Fast Eddie, a registered agent with his broker-dealer, discovers that SafeAway's stock is registered only in the states of Colorado and Wyoming. Neither Fast Eddie nor his broker-dealer are registered to do business in either of those states. Under these circumstances,
A. Fast Eddie should contact a broker-dealer that is registered in either Colorado or Wyoming and negotiate a finder's fee for referring Mr. Moneybags to them.
B. Fast Eddie can execute the trade for Mr. Moneybags since this would be considered an exempt transaction because it is a private placement.
C. Fast Eddie can execute the trade for Mr. Moneybags since this would be considered an exempt transaction because it is an unsolicited transaction.
D. Fast Eddie cannot effect Mr. Moneybags purchase of SafeAway stock since neither he nor his broker are registered to do business in Colorado or Wyoming, and SafeAway stock is not registered for sale in the state of Massachusetts.
Question 3
Under the NASAA Model Rules, the statute of limitations for civil liabilities is
A. three years after the discovery of the facts and four years after the violation, whichever is greater.
B. the earlier of two years after the discovery of the facts and four years after the violation.
C. the earlier of two years after the discovery of facts and three years after the sale.
D. the earlier of three years after the discovery of facts and five years after the violation.
Question 4
The state of Massachusetts has issued a general obligation (G.O.) bond that pays 3% interest. As an agent selling this bond, you can legitimately tell the investor that
A. all state general obligation bonds are also guaranteed by the federal government.
B. all of the above statements are true.
C. the interest income the investor receives from the bond will be free from federal taxation.
D. the bond is guaranteed by the state of Massachusetts and is, therefore, a risk-free investment.
Question 5
Assuming there is not a stop order or a proceeding pending, under the registration by coordination process a security's registration with the state becomes effective:
A. immediately subsequent to approval by the SEC, regardless of how long the registration statement has been on file.
B. only when it is approved by the state Administrator, regardless of whether it has been approved by the SEC.
C. immediately after approval by the SEC as long as the registration statement has been on file for at least
20 days or the Uniform Securities Act has provided an exemption to this waiting period.
D. only when it is approved by the state Administrator, who will review the registration documentation upon notification that SEC approval has been granted.
Solutions:
| Question 1 Answer: A | Question 2 Answer: C | Question 3 Answer: C | Question 4 Answer: C | Question 5 Answer: C |
By Dennis
