The Series 66, known as the Uniform Combined State Law Examination, qualifies individuals for registration as an Investment Adviser Representative and/or a securities agent. The exam tests a candidate’s knowledge of state securities law, advisory ethics, and general financial concepts. The Series 66 exam does not strictly require an employer to sponsor the candidate, but the complex system of co-requisite exams usually makes firm sponsorship a practical necessity for the most common qualification path.
The Direct Answer: Sponsorship Requirements for the Series 66
The Series 66 is unique because it functions as a combined examination, drawing content from both the Series 63 (state law agent) and the Series 65 (Investment Adviser Representative) exams. To be eligible to take the Series 66, a candidate must have already passed the General Securities Representative Qualification Examination, or Series 7. The Series 66 itself does not require an employer to file a Form U4 specifically for this exam, provided the Series 7 co-requisite has been met.
This means an individual who passed the Series 7 years ago while sponsored by a firm could theoretically return to take the Series 66 without current sponsorship, assuming the Series 7 registration is still active. However, passing the Series 66 exam only provides a qualification score; it does not grant actual registration status. Formal registration as an agent or Investment Adviser Representative (IAR) requires the individual to be actively employed and sponsored by a registered firm.
The Required Precursor Exam: Series 7 Sponsorship
The Series 7 exam, which must be passed before or concurrently with the Series 66, is the point at which sponsorship becomes mandatory for most candidates. The Financial Industry Regulatory Authority (FINRA) mandates that candidates for the Series 7 General Securities Representative Qualification Examination must be sponsored by a FINRA member firm. This sponsorship is formalized when the firm files the Uniform Application for Securities Industry Registration or Transfer, known as Form U4, on the candidate’s behalf.
This filing initiates the background check and registration process, which is necessary before FINRA authorizes the individual to sit for the Series 7 exam. Candidates must also pass the Securities Industry Essentials (SIE) exam, which, unlike the Series 7, does not require firm sponsorship but is a prerequisite for taking representative-level qualification exams. The SIE, Series 7, and Series 66 combination represents the most common path for individuals seeking to qualify as both a securities agent and an IAR.
The Sponsorship-Free Alternative: Series 65 and Series 63
Individuals who are unable or unwilling to obtain firm sponsorship before testing have an alternative path to achieve IAR status without the Series 7 requirement. The Series 65, the Investment Adviser Representative Examination, does not require a candidate to be sponsored by a registered investment advisory firm to sit for the test. This allows individuals to qualify their knowledge and enter the job market with the necessary exam qualification already secured.
By passing the Series 65, an individual qualifies to register solely as an IAR, which is generally for those who provide advice for a fee, rather than executing transactions for a commission. Combining the Series 65 with the Series 63, the Uniform Securities Agent State Law Examination, provides a similar, albeit functionally different, registration status compared to the Series 66. The Series 63, which focuses on state securities regulations, also does not require firm sponsorship to take the exam, providing a sponsorship-free route to gaining the necessary exam credentials for state registration as an agent and IAR.
The Registration Process After Passing the Exam
Passing the Series 66 exam is only the initial step in the professional qualification journey; it grants exam eligibility, not an active license. To formally register with state regulators and begin working, the qualified candidate must secure employment with a registered entity, either a broker-dealer or an investment adviser firm. This employing firm is then responsible for filing the necessary registration paperwork, typically the Form U4, with both the state regulator, often coordinated through the North American Securities Administrators Association (NASAA), and FINRA.
The firm’s filing of the Form U4 activates the registration status, officially making the individual an IAR or agent in the relevant jurisdictions. The exam results are only valid for a specific window, typically two years, until the individual secures active registration. If a candidate passes the Series 66 but does not become actively registered within this period, the qualification score lapses, and the individual would need to re-take the examination to become eligible for registration.
Maintaining Your Professional Credential
Once an individual is actively registered as an IAR or agent, maintaining the credential requires adherence to ongoing Continuing Education (CE) requirements mandated by regulators. FINRA and NASAA require registered professionals to complete CE training, which is split into two components. The Regulatory Element is standardized training developed by the regulators that addresses compliance, regulatory requirements, and ethical standards.
The second component is the Firm Element, which is training developed and delivered by the employing firm to cover specific product knowledge, internal procedures, and relevant regulatory updates. If a registered individual leaves the industry or is terminated from their firm, their active registration status is lost. The individual is generally given a window, usually two years from the date of termination, to affiliate with a new firm and have their registration re-activated before they are required to re-test for the Series 66.