The series 79 exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of an investment banking representative, including advising on or facilitating debt or equity securities offerings through a private placement or a public offering and mergers and acquisitions. This exam is not recognized in all states and must always be taken with another securities agent licensing exam such as series 6 or series 7. The state securities laws and the regulatory scheme has not changed much since 2001 when i published the first version of this blue sky law introduction. The series 63 license by itself does not allow examinees to act as securities agents. Finra may grant waivers, in exceptional cases, or exemptions for qualification exams, pursuant to finra rule 1210. The series 63 is administered by the financial industry regulatory authority finra and is required by all states under the uniform securities act. The examination is designed to qualify candidates as securities agents in the united states. A general overview of finras series 6, 7, 63, 65 and 66. The three basic groups of covered securities are exchangelisted and nnm securities, securities sold to qualified purchasers and securities issued by investment companies, like mutual funds. Mar 08, 2018 in this video, i discuss the fundamental difference between exempt and excluded for securities and persons, which is a big testable concept for the series 63, 65, and 66. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
The uniform securities agent state law examination consists of 65 multiplechoice questions. One of the keys to passing the series 63 exam is to make sure that you have a complete understanding of how exempt transactions will be tested on the series 63 exam. In this video, i discuss the fundamental difference between exempt and excluded for securities and persons, which is a big testable concept for the series 63, 65, and 66. The series 63 is a licensing examination that most states require for anyone who wants to sell securities within the state. Series 63 registration of securities, exempt securities.
In order for a candidate to pass the series 63 exam, heshe must correctly answer at. For example, us government securities, municipal securities, bank securities, and highly rated commercial paper do not have to be registered. It is always taken in conjunction with another securities agent license exam like the series 7 general securities representative, series 6 investment company productsvariable contracts limited representative, or other limited representative licenses. Dashboard registration of securities and issuers exempt securities exempt securities drill. Therefore, a nonexempt security is a security that does need to register. In order for a candidate to pass the series 63 exam, heshe must correctly answer at least 43 of the 60 scored questions. Exempt securities taken from our series 65 nasaa uniform investment advisor law exam definition of the term exempt securities. The national securities markets improvement act of 1996 nsmia redefined which securities required state registration. Selling securities securities under illinois law, all securities offered or sold in the state must be registered prior to offer or sale, unless exempt by law. Series 63 registration of securities, exempt securities youtube.
The act is not a federal law, its a set of state laws based on a model created by an organization of people who administer. An exempt transaction is a type of securities transaction where a business does not. Series 63 securities registration flashcards quizlet. Consistent with that purpose, the agency seeks to ensure a free and competitive securities market for texas, increase investor confidence, and thereby encourage the. The state securities board is responsible for administering and enforcing the texas securities act. While the sec directly, and through its oversight of the finra and the various exchanges, is the main enforcer of the nations securities laws, each individual state has its own securities laws and rules. Virgin islands and puerto rico had adopted the new rules. Contact finra, 212 8584000, for a test booklet and application form. The series 7 serves as a prerequisite for both the series 63 and the series 66. Many states require an agent to pass the series 63 exam in addition to the series 6, 7 or 62 exams to conduct securities business within the state. You are not an agent when effecting exempt securities. A holder of the series 63 license is qualified to trade securities any place in the united states, and. Finras series 63 is the uniform securities agent state law exam.
Exempt securities are the instruments used that the government backs, which have taxexempt status. Florida does not require the uniform securities agent law examination series 63 nasaa examination. Soliciting orders for unregistered, nonexempt securities drill quizlet in order to understand why soliciting orders for unregistered, nonexempt securities this is wrong, you first have to understand what the terms exempt and nonexempt meanand why theyre important. Series 63 uniform securities agent state law examination. Most securities exams administered by both finra and the nasaa have a passing score of 70%, except for the series 7, 63, and 65, which have passing scores of. Administrator the official or agency administering the state uniform securities act term. Under most circumstances, a series 7, series 6 or other appropriate securities license is also required to sell securities. Exempt securities, under section 4 of the securities act of 1933, are financial instruments that carry government backing and typically have a government or taxexempt status. One of the keys to passing the series 63 exam is to make sure that you have a complete understanding of how exempt transactions will.
The series 63 is a securities license entitling the holder to solicit orders for any type of security in a particular state. This article which was produced from material contained in our series 63 textbook and will. Mastering exempt transactions on the series 63 exam uniform securities exam. The series 63 uniform securities act usa exam, although short, can be challenging. Series 63 exam flashcard study system uses repetitive methods of study to teach you how to break apart and quickly solve difficult test questions on the uniform securities agent state law examination blue sky law exam. The series 63 exam the uniform securities state law examination is a north american securities administrators association nasaa exam administered. Certain stocks, such as those listed on exchanges are, by contrast, exempt from registration.
Florida does require the uniform investment adviser law examination series 65 nasaa or both the general securities representative series 7 and uniform combined state law examination series 66 nasaa for individuals applying to be registered as an investment adviser or investment. This license is required in most states to sell securities within that particular state. The exam covers the principles of state securities regulation as reflected in the uniform securities act and its amendments and related rules, as well as ethical practices and fiduciary obligations. Under the uniform securities act, an investment adviser with no place of business in the state is exempt from registration if they only offer advice to employee pension, benefit or profit sharing plans with assets greater than. Registration requirements for nonfinra broker dealers and. Exempt securities taken from our series 24 finra general principal qualification examination. Aug 21, 2012 a security that does not have to be registered is an exempt security, which means its still a security subject to antifraud regulations. The uniform securities act is at the heart of the series 63 exam. May 05, 2019 most securities exams administered by both finra and the nasaa have a passing score of 70%, except for the series 7, 63, and 65, which have passing scores of 72%, and series 66, which has a.
Executes securities transaction only for non exempt securities. Brokerdealer and securities registration information sheet. Firms are permitted to request a waiver or an exemption for the security industry. Passing the uniform securities agent state law examination series 63 qualifies an individual to act as a securities agent. This examination may be waived for firms that do not have custody of customers funds or securities and do not clear the customers transactions for example, a brokerdealer clears its transactions through another firm. Exempt securities are exempt from the registration requirements of the securities act of 1933. The mission of the state securities board is to protect texas investors. Series 63 exam training understanding securities registration. What are the primary reasons the administration might use its authority to issue a stop order denying the effectiveness of a registration statement, or may suspend or revoke the registration of an issue.
Further, some states allow issuers to solicit indications of interest in an offering before. Created by the experts at the securities institute of america, inc. Exempt securities, under section 4 of the securities act of 1933, are financial instruments that carry government backing and typically have a government or tax exempt status. Securities agents must acquire the series 63 license, in.
In addition to the requirements set forth below, most states require the agents of issuers in regulation a offerings to register, and many also require agents to pass certain securities examination, such as the series 7, series 63 andor the series 66. This video is taken from our series 63 video lecture. Developed by the north american securities administrators association nasaa, the test covers state securities laws, known informally as blue sky laws, as reflected in the uniform securities act as amended by nasaa. Finra is an agency under the north american securities administrators association nasaa. Applicants are allowed 75 minutes to complete the examination. The series 63 will at be updated to reflect changes in the 2002 amendment to the uniform securities act when the nasaa determines that enough jurisdictions have adopted the newer version of the act. Exempt securities are financial instruments that do not need to be registered with the securities exchange commission sec.
Series 63 exam uniform securities agent the series 63 exam uniform securities agent is administered in conjunction with the north american securities administrators association nasaa. Series 63 term definition administrator the official or. Series 63 exam training mastering exempt transactions. Series 63 practice test securities, payroll, insurance. This article which was produced from material contained in our series 63 textbook and will help you. For the series 63 exam, think of covered securities as being exempt from state registration under the usa. In this video, i discuss the fundamental difference between exempt and excluded for securities and persons, which is a big testable concept. Understanding securities registration on the series 63 exam uniform securities exam. Advertisement any material designed for use in any public. One of the keys to passing the series 63 exam is to make sure that you have a complete understanding of how securities registration will be tested on the series 63 exam. The series 63 exam the uniform securities state law examination is a north american securities administrators association nasaa exam administered by finra.