The short answer is … nothing. The Series 63 license by itself does not permit a licensee to transact any securities business.
What licenses do I need to sell investments through a broker-dealer?
Individuals entering the securities industry seeking to transact securities business through a broker-dealer are required to obtain multiple licenses/registrations. The FINRA SIE and representative-level (Series 6 or Series 7) exams must also be successfully completed to sell the most common investment products on the market, such as stocks, bonds, and mutual funds. In addition to passing the FINRA exams, candidates in most states must also pass the NASAA Uniform Securities Agent State Law Exam (USASLE), more commonly known as the Series 63 exam. Currently, the Series 63 exam is not required for registration in CO, D.C., FL, LA, MD, OH, and Puerto Rico.
FINRA and State Registration?
Before transacting any securities business with public customers, candidates must go through a stringent process to meet registration qualifications set by FINRA, state qualifications established by the NASAA, and the hiring broker-dealer’s own qualifications. Meeting the exam and registration requirements allows the candidate to be registered with FINRA as a registered representative and licensed at the state level as a broker-dealer agent.
Is the Series 63 a state law test?
Sort of. The Series 63 exam was established and developed by NASAA and focuses on the Uniform Securities Act (USA). The USA is the model act for state securities regulations. The exam tests on the general aspects of the USA, rather than state-specific adoptions of the Act. In other words, the exam is the same for candidates in all states.
What do I need to know about the Series 63 exam?
Securities agents looking to obtain a Series 63 license must have entry-level knowledge of the state securities regulations, ethical business practices and fiduciary responsibilities. Testable topics covered in this course include: The Uniform Securities Act of 1956 (USA), NASAA Statement of Policy and Model Rules, state registration and regulation of nonexempt persons, state registration of nonexempt securities, unethical and prohibited practices, handling of client funds and securities, and administrative procedures.
While the Series 63 exam is developed by NASAA, it is administered through FINRA and can be scheduled through FINRA’s CRD via FINRA.org. All securities exams are delivered by the Prometric testing provider and can be taken anywhere Prometric offers testing.