So you’ve probably heard that the Series 66 is some kind of "super exam." People talk about it like it’s the golden ticket of the financial world. But honestly? Most folks just see it as a hurdle to jump over after survived the Series 7. If you’re trying to figure out what does series 66 allow you to do, you need to stop thinking of it as just another test and start seeing it as the bridge between "selling stuff" and "giving real advice."
The Series 66, or the Uniform Combined State Law Examination if we’re being all official and fancy, is basically the Swiss Army knife of licenses. It allows you to operate as both a securities agent and an investment adviser representative (IAR). You aren't just a broker. You aren't just an advisor. You’re both.
The Dual Power: Brokerage vs. Advisory
When you pass the Series 66—and assuming you’ve already cleared your Series 7—you suddenly have the legal green light to sit on both sides of the table. In the old days, you were usually one or the other. You either worked for a big broker-dealer selling stocks for a commission, or you worked for an RIA (Registered Investment Adviser) giving advice for a fee.
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The Series 66 lets you do both. This is massive.
It means you can charge a client a flat fee for a financial plan and then, if it makes sense, execute the trades to build that plan. You aren't constantly bumping into regulatory walls. You can provide a "holistic" experience, which is basically industry-speak for "I can do everything my client needs without referring them to someone else."
What Does Series 66 Allow You To Do for Your Clients?
Kinda everything. Well, within the realm of securities and advice.
Specifically, once you’re registered, you can:
- Provide fee-based investment advice. This is the big one. You can charge people based on their assets under management (AUM) or a flat hourly rate.
- Solicit investment advisory services. You can legally go out and hunt for new clients to manage money for.
- Sell securities in multiple states. The Series 66 is a "uniform" exam, meaning it’s recognized across state lines (as long as you register in those states).
- Act as a fiduciary. When you're operating under your IAR status, you are legally bound to put your client’s interests before your own. This is a higher standard than the "suitability" standard that traditional brokers often follow.
Honestly, the flexibility is the real draw here. You’ve probably noticed the industry moving away from commissions and toward "fee-only" or "fee-based" models. The Series 66 is what keeps you relevant in that shift.
Why not just take the Series 65?
This is where people get confused. The Series 65 allows you to be an IAR. The Series 63 allows you to be a securities agent. The Series 66 is quite literally the two of them smashed together.
But there’s a catch.
You can take the Series 65 as a standalone. You don't need the Series 7 for it. But to actually use the Series 66, you must have a valid Series 7. If you haven't passed the 7, your 66 is essentially a very expensive piece of paper sitting in a drawer. NASAA designed it this way to prevent overlap. Since the Series 7 covers a lot of the product knowledge (stocks, bonds, options), the Series 66 can skip that stuff and focus entirely on the law and ethics.
It makes for a shorter, punchier exam. 100 questions. 150 minutes. You need a 73% to pass.
The Regulatory Jungle: What You're Actually Allowed to Navigate
The bulk of the Series 66—like 45% of it—is just pure law and regulations. We’re talking about the Uniform Securities Act, the Investment Advisers Act of 1940, and the SEC’s rules.
Why? Because the state wants to make sure you won't steal people's money.
The license allows you to handle the "administrative" side of the business. You’ll understand how to register your firm, what constitutes an "exempt" security, and exactly how many clients you can have in a state before you’re forced to register there (usually the "de minimis" rule of five or fewer).
It also covers the "forbidden" stuff. You learn exactly what not to do, like "front-running" (trading before your client does) or "churning" (trading too much just to generate commissions). Basically, the 66 gives you the legal framework to run a clean, ethical practice.
Real World Scenario: The Hybrid Advisor
Imagine you’re working with a client, let's call him Dave. Dave has $500,000 in an old 401(k) and wants to move it.
With just a Series 7, you might be able to help him buy some mutual funds, but you’d be limited in how you can charge him for the ongoing advice. With the Series 66, you can roll that money into an IRA, charge a 1% management fee to oversee it, and provide him with an annual financial plan.
If Dave also wants to buy $10,000 worth of a specific stock and pay a one-time commission for it? You can do that too. You’re a hybrid. You can pivot between the roles of "Broker" and "Advisor" depending on what’s best for Dave.
Breaking Down the Exam Content (The 2026 Reality)
The exam isn't getting easier. Regulators like NASAA are constantly updating the pool of questions to reflect new rules, especially around things like the SEC’s "Regulation Best Interest" (Reg BI) and marketing rules.
Here is what the weight looks like currently:
- Laws, Regulations, and Guidelines: 45% (The meat and potatoes)
- Client Recommendations and Strategies: 30% (Suitability and portfolio theory)
- Investment Vehicle Characteristics: 17% (Review of what products actually are)
- Economic Factors and Business Information: 8% (Basic macro stuff)
It’s heavy on the law. It’s light on the math. If you can memorize rules and understand ethical nuances, you’re golden. If you hate reading fine print? You’re gonna have a bad time.
The "No Sponsorship" Perk
One cool thing about the Series 66 is that you don't actually need a firm to sponsor you to take the test. Anyone can sign up, pay the $177 fee, and sit for it.
This is a game-changer for people looking to break into the industry. Imagine showing up to an interview at a big wealth management firm and saying, "Hey, I’ve already passed the SIE and the Series 66." You’re already halfway to being fully licensed. You’re a much lower risk for the firm because they don't have to pay for your study materials or worry about you failing the state law portion.
Common Misconceptions About the 66
People think the Series 66 is "easy" because it’s shorter than the 7. Don't fall for that.
The Series 7 is long, but it’s intuitive. If you understand how a call option works, you can answer questions about it. The Series 66 is tricky. It uses "lawyer-speak." It will ask you questions where two answers seem right, but one is "more" right because of a tiny detail in the Uniform Securities Act.
Also, remember that passing the exam doesn't mean you are "licensed." It means you are "qualified." You still have to file your Form U4 and be registered in a specific state before you start talking to clients. If you start giving advice before your registration is "active," you’re technically "selling away" or operating as an unregistered agent. That’s a fast track to getting banned from the industry before you even start.
Maintenance and Staying Legal
Once you have it, you have to keep it.
The industry is big on CE (Continuing Education). In recent years, NASAA has rolled out new requirements for IARs. You’ll likely need to complete 12 credits of CE every year—six for Products and Practices and six for Regulatory and Ethics. If you let this slide, your license goes into "inactive" status.
And if you leave the industry for more than two years? Your license expires. You’d have to retake the whole thing. Nobody wants to do that.
Actionable Steps to Get Licensed
If you’re ready to leverage what the Series 66 allows you to do, here is your roadmap:
- Pass the SIE first. It’s the baseline. You can’t avoid it.
- Tackle the Series 7. You need this co-requisite to make the 66 functional.
- Study for 60-80 hours. Even if you’re a genius, the law questions are weird. Use a provider like Kaplan or Achievable to get used to the question phrasing.
- Register through FINRA’s TESS system. You don't need a firm yet. Just create an account and pay the fee.
- Focus on the "Ethics" section. This is where most people fail. They assume "being a good person" is the same as "following the law." It's not.
The Series 66 is the difference between being a salesman and being a professional. It gives you the authority to build a real, fee-based business that can scale. If you're serious about a career in wealth management, this isn't just a "nice to have"—it's the foundation.