Uniform Combined State Law Exam (Series 66) Study Guide

73 of the 100 scored questions (a scaled 73%).

$177.

100 scored questions in 150 minutes.

It combines the state law portions for Investment Adviser Representative (IAR) and Agent registration. The Series 7 is a co-requisite to qualify — the 66 is not a standalone license.

100 scored questions (there may be additional unscored pretest questions on the exam form, but only the 100 scored questions count).

150 minutes.

You must answer at least 73 of the 100 scored questions correctly (73%).

$177.

It is the Uniform Combined State Law Exam, combining the content of the Series 63 (state securities law) and Series 65 (investment adviser law) into a single exam.

No — because the Series 7 is typically required alongside the Series 66, the exam omits the product/analysis content covered on the Series 65 and focuses on state law, ethics, and regulatory topics.

It qualifies a candidate to register as both an Investment Adviser Representative (IAR) and a securities agent, when combined with a Series 7.

Economic factors and business information; investment vehicle characteristics; client recommendations and strategies; and laws, regulations, guidelines, and ethical practices.

North American Securities Administrators Association — it develops the content outline and model rules (like the Uniform Securities Act) tested on the Series 66.

A model state securities law that most states have adopted in some form; it underlies much of the state-law content tested on the Series 66.

An investment adviser regulated by the SEC (typically due to AUM above the state/federal threshold) rather than by individual state securities regulators, though it may still owe notice filings to states.

A fiduciary duty — the obligation to act in the client's best interest, including duties of loyalty and care.

Pace yourself at roughly 1.5 minutes per question on average, flag uncertain items, and budget time to review flagged questions before submitting.

The Series 66 combines the Series 63, 65, and 66 into one uniform state law exam. It tests knowledge of state securities laws, fiduciary duties, investment adviser regulations, and basic securities products and services.

An accredited investor is an individual with annual income exceeding a specific threshold or net worth above a specific amount (excluding primary residence), or certain institutional investors. They can invest in private placements and other restricted securities with fewer disclosures.

A wrap fee is a single, all-inclusive fee charged by an investment adviser that covers advisory services, transaction costs, and other administrative costs. Advisers must disclose wrap fee conflicts of interest, including whether trading may be excessive.

Advisers managing less than a state-specific threshold (often $25-30M in assets under management) must register with the state. Advisers managing at or above the federal threshold must register with the SEC, not the state.

A breakpoint is a declining sales charge based on purchase amount—larger purchases receive lower percentage charges. Registered persons must disclose breakpoints, offer them, and should recommend them to eligible customers to reduce costs.

Pink sheets (now OTC Markets) are quotation services for thinly traded, unlisted securities. They typically have minimal regulatory oversight, wider bid-ask spreads, and higher risk than exchange-listed stocks.

Market manipulation is conduct that distorts fair market prices, such as pump-and-dump schemes, wash trades, spoofing, or disseminating false information to affect security prices. All forms are prohibited under federal and state securities laws.

Suitability requires recommendations to be reasonable for a client's financial situation. Fiduciary duty is a higher standard requiring the adviser to place client interests first in all respects. All investment advisers are fiduciaries; not all broker-dealers are.

Form ADV Part 1 amendments must be filed within 30 days of material changes (changes to SEC or state registration status). Part 2 (brochure) amendments require delivery to clients annually or within 30 days of material changes.

A penny stock is typically an unlisted security priced under $5, though definitions vary by regulation. Sales require written disclosure of risks, current bid-ask quotations, compensation, and a suitability statement before or with confirmation.

Churning is excessive trading in a discretionary account that is unsuitable and designed to generate commissions for the registered person rather than benefit the client. It violates the antifraud provisions and can result in disciplinary action.

An offering circular is a disclosure document for certain securities (like Regulation A+ offerings or limited offerings). It contains financial, operational, and risk information required before or with the sale of the security.

A variable annuity is an insurance product with returns tied to underlying investment options. It is both a security (requiring 1035 exchanges to be handled carefully) and an insurance product, regulated by both the SEC and state insurance commissioners.

Before approving an options account, a firm must verify the customer's financial situation, investment experience, and objectives. Customers must sign a suitability agreement, and the firm must reassess suitability within a set period.

Insider trading is trading securities while in possession of material nonpublic information. The disclose-or-abstain rule requires those with such information to either disclose it to the market or refrain from trading until it becomes public.

A blind portfolio is one managed without the adviser knowing client identities (the adviser receives trade instructions without knowing whose account benefits). It reduces the incentive for conflicts of interest and limits preferential treatment.

Conflicts of interest must be disclosed proactively and in writing before the transaction occurs. Common conflicts include compensation for in-house products, dual registration, private placements, or transactions with related parties.