FINRA Series 65 - Uniform Investment Adviser Law Practice Test

The Series 65 is required for individuals who provide investment advice for a fee and must register as Investment Adviser Representatives (IARs) with their state securities regulator. This includes financial planners, wealth managers, and professionals at Registered Investment Adviser (RIA) firms who do not hold other specific credentials (like the CFP(R) certification or certain professional designations) that provide an alternative qualification. It is not required for broker-dealer representatives who are solely engaged in effecting securities transactions.

The Series 7 (General Securities Representative) licenses individuals to sell securities products for a broker-dealer. The Series 65 qualifies individuals to provide investment advice for a fee. The Series 66 is a combined exam that covers both the Series 65 content and state securities agent law (Series 63), but it can only be taken after first passing the Series 7. The Series 65 stands alone and does not require a Series 7, making it the preferred path for fee-only advisers who do not engage in securities transactions.

A core principle of the exam is the fiduciary duty owed by investment advisers to their clients. This duty, established under the Investment Advisers Act of 1940 and state laws, requires advisers to act with utmost good faith, provide full and fair disclosure of all material facts, and always place the client's interests above their own. This includes the duties of loyalty and care, avoiding conflicts of interest, and obtaining best execution for client transactions. Questions frequently test the application of this duty in real-world advisory scenarios.

The exam is divided into four major sections: 1) Economics and Investment Information (covering economic factors, financial reporting, and quantitative methods), 2) Investment Vehicle Characteristics (stocks, bonds, derivatives, packaged products, alternative investments), 3) Client Investment Recommendations and Strategies (portfolio management, retirement planning, tax considerations, suitability), and 4) Laws, Regulations, and Guidelines (state and federal securities acts, ethics, fiduciary obligations, prohibited practices).

No. While passing the exam is a one-time event, maintaining the license requires ongoing compliance. IARs must complete annual continuing education (CE) requirements through an approved program and must remain affiliated with a state-registered or SEC-registered investment adviser firm. The license becomes inactive if you are unaffiliated with a firm for more than two years, which may require re-taking the exam or meeting other reinstatement requirements.