PDF Version DemoFINRA Series63 Exam Overview:
| Certification Vendor: | North American Securities Administrators Association (NASAA) / FINRA |
|---|---|
| Exam Name: | Uniform Securities Agent State Law Examination |
| Exam Number: | Series 63 |
| Passing Score: | 43 out of 60 (72%) |
| Available Languages: | English |
| Exam Duration: | 75 minutes |
| Related Certifications: | SIE (Securities Industry Essentials) Series 7 Series 6 Series 66 |
| Exam Price: | USD 147 |
| Real Exam Qty: | 60 scored + 5 unscored pretest |
| Certificate Validity Period: | Valid while registered; score generally valid for ~2 years if not employed |
| Exam Format: | Multiple Choice |
| Sample Questions: | FINRA Series63 Sample Questions |
| Exam Way: | Administered at Prometric testing centers (computer-based), closed-book with supervised proctor. |
| Pre Condition: | No formal prerequisites; often taken with SIE and a representative-level exam (e.g., Series 7 or Series 6) for full securities registration. |
| Official Syllabus URL: | https://www.finra.org/registration-exams-ce/qualification-exams/series63 |
FINRA Series63 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Remedies and Administrative Provisions | 9% | - Enforcement and penalties - State Administrator authority |
| Regulation of Broker-Dealer Agents | 13% | - Agent registration requirements - Associated person regulations |
| Regulations of Securities and Issuers | 9% | - Issuer regulation principles - Securities registration and exemptions |
| Regulation of Investment Adviser Representatives | 5% | - IAR registration and obligations - Recordkeeping and contract standards |
| Regulation of Investment Advisers | 5% | - Investment adviser registration rules - Federal vs state adviser regulation |
| Regulation of Broker-Dealers | 12% | - Federal and state registration standards - Broker-dealer regulatory requirements |
| Communication with Customers and Prospects | 20% | - Disclosure requirements - Advertising and correspondence rules |
| Ethical Practices and Obligations | 25% | - Fraudulent and unethical conduct - Conflicts of interest and fiduciary duties |
FINRA Uniform Securities Agent State Law Examination Sample Questions:
Question 1
You have passed the necessary exams (congratulations!) and are applying for registration as a securities agent.
It is already the end of September. Therefore, you must pay
A. the full annual fee, and your license will expire on September 30th next year.
B. the full annual fee, and your license will expire on December 31st this year.
C. one-fourth of the annual fee required since only one quarter of the year remains.
D. the full annual fee, and your license will expire on December 31st next year.
Question 2
on No: 9
Rich Writewell wants to begin publishing an independent weekly financial newsletter that will provide investment recommendations as well as other financial news items to the general public. Rich hopes that his newsletter will achieve nationwide circulation within a few months.
Which of the following statements is true?
A. Rich will not have to register as an investment adviser since he is publishing a legitimate financial newsletter for distribution to the general public.
B. Rich may be exempt from registering as an investment adviser if he is a lawyer, accountant, engineer, or teacher. Otherwise, he will have to register.
C. Rich will have to register as an investment adviser since his publication will include investment recommendations.
D. Rich will have to register as an investment adviser only if he sells this newsletter to the public. If the publication is to be distributed free of charge, he will not have to register.
Question 3
Julia Hasty has recently applied with the Administrator to be a registered investment adviser in the state. Eager to open her new business, she has business cards printed that indicate that she is a "state-registered" investment adviser and visits some local businesses, asking them for permission to put some of her cards in their waiting rooms.
Has Julia violated any of the provisions of the Uniform Securities Act by distributing her business cards?
A. No. As long as her application has been submitted and is pending acceptance, Julia has not violated any provisions of the Uniform Securities Act.
B. No. Julia has merely put her business cards in waiting rooms. She has not opened her business to clients yet.
C. No. The provisions of the Uniform Securities Act relate to securities, not people.
D. Yes. Julia is not permitted to advertise as a "state-registered" investment adviser until she receives notification of the acceptance of her application by the state Administrator.
Question 4
Nat Smart was employed as an investment adviser representative and sold many of his clients on a municipal bond fund of which he was fond, telling his clients that the returns earned on it were completely free from federal taxation. Unfortunately, he had some unhappy clients when, at the end of the year, they discovered that they had to pay federal tax on the capital gains earned by the fund when it sold some of the bonds it held. Nat was as surprised as they were.
Based on these facts, which of the following statements is necessarily true?
I. Because Nat was as surprised as they were, he is guiltless.
II. Nat is subject to civil liability payments.
III. Nat will be subject to the criminal penalties for fraud and may spend time in prison.
A. II only
B. I only
C. III only
D. II and III only
Question 5
A hypothecation agreement refers to
A. an agreement signed by a client who is executing a margin transaction that allows the broker to hold the margined securities in street name as collateral for the loan.
B. an agreement wherein a client gives his broker-dealer discretion to purchase securities that the broker-dealer deems appropriate in whatever quantity the broker-dealer feels appropriate and at a time and price the broker-dealer believes is a good deal.
C. a document signed by a client indicating that he or she understands that some of the charts and examples presented in a broker-dealer's advertising literature are based on hypothetical trades.
D. an agreement that a client must sign prior to executing any short sales with the broker-dealer.
Solutions:
| Question 1 Answer: B | Question 2 Answer: A | Question 3 Answer: D | Question 4 Answer: A | Question 5 Answer: A |
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