State securities laws and regulations can feel like a new subject, even if you’ve already taken other securities exams. Some of what you already know will carry over, but the Series 63 is much more focused on state-level rules and the legal framework behind them.
The Series 63 focuses on laws and regulations, especially at the state level. You may already be familiar with the SEC and FINRA, which oversee securities regulation nationally. This exam shifts the focus to state regulation, where you’ll work with concepts like state administrators and the Uniform Securities Act.
A good place to start is the Uniform Securities Act* (often called the USA). The USA is a model law that states can adopt as a framework for regulating the securities industry. Because many states base their rules on the same model, firms and professionals can more easily comply across multiple states. Without a shared framework, each state could create very different rules, and a firm operating in several states would have to navigate a patchwork of requirements.
*Most of this material is based on the USA. There have been multiple versions of this legislation, but two are primarily utilized by the states: the Uniform Securities Act of 1956 and the Uniform Securities Act of 2002. While both are similar, there are slight differences that are generally unimportant for the exam. If you want to see the actual laws, click the previous links. If you’re not a fan of reading lengthy legislation, don’t worry! We read, analyzed, and summarized the important testable parts in this learning program.
**State securities laws were originally referred to as “blue sky laws.” It was said that certain advisors and brokers would go so far as “sell the blue sky” as they were attempting to take advantage of unknowing investors.
State laws and regulations created and enacted under the USA are similar from state to state. They cover a wide range of issues, including:
These laws and regulations are enforced by the state administrator. You can think of the administrator as the state-level counterpart to the SEC. Despite the singular name, the administrator is typically an office (a group of people) responsible for enforcing the USA in that state. In practice, states often use different titles than the legal term used on the exam. For example, California refers to its state administrator as The Department of Financial Protection and Innovation.
The Series 63 is often required in addition to other qualifications, like the Series 6, 7, or 66, depending on the type of business you plan to engage in.
Similar to FINRA’s SIE exam, you do not need to be sponsored by a financial firm to sit for the exam. If you don’t have a firm sponsor, you can still proceed with registration independently.
The Series 63 is a timed multiple-choice exam structured similarly to FINRA exams. You’ll be given 65 questions, including 5 “experimental” questions. That means 60 questions are graded. To pass, you must score 72% (43 correct answers out of 60 graded questions) in 75 minutes or less.
The North American Securities Administrators Association (NASAA), which represents state administrators, provides a fairly straightforward outline on its website. Here’s a quick summary of what to expect on the exam:
| Topic | # of test questions |
|---|---|
| Regulation of Investment Advisers | 3 (5%) |
| Regulation of IARs | 3 (5%) |
| Regulation of Broker-dealers | 7 (12%) |
| Regulation of Agents | 8 (13%) |
| Regulation of Securities and Issuers | 5 (9%) |
| Regulation of Administrative Provisions | 7 (11%) |
| Communications | 12 (20%) |
| Ethical Practices and Obligations | 15 (25%) |
| Total | 60 |
Each of these topics will be covered accordingly through the Achievable materials, and our practice exams are weighted according to NASAA’s outline.
This exam is heavily focused on securities laws, and at times it can feel like studying for the bar. Legal concepts can be detailed and technical, and exam questions often test small distinctions. The key skill is applying the rules to realistic situations, not just memorizing definitions.
Plan to use practice questions consistently. The Series 63 includes many scenario-based questions where you’ll need to decide which rule applies and what the correct outcome is. Knowing the rule is one step; applying it correctly is what the exam is really testing. You’ll see plenty of scenarios that aren’t perfectly clear-cut, so repeated practice with mixed question sets matters.
The textbook’s wrapping-up portion contains more details about taking the Series 63 exam, including how to register, exam cost, and test-taking options.
This course is designed to guide you through every aspect of the Series 63 exam. Achievable exam prep includes our online textbook, review questions, full-length practice exams, and videos on key topics. We recommend that you work through the course as prompted, starting with the textbook and continuing to practice problems and exams. Remember that practice makes perfect!