Series 63 Exam 2026: FINRA Uniform Agent State Law Guide

Quick Answer

The Series 63 (Uniform Securities Agent State Law Examination) is a FINRA-administered state-law exam for broker-dealer agents and state-registered investment adviser representatives. The exam has 60 scored questions, 75 minutes, 72% pass mark, and costs $125. The exam is sponsored by a registered firm and is required in most US states for state securities registration (FINRA, 2026).

Data last verified September 2026 from FINRA and the North American Securities Administrators Association (NASAA).

Exam format

Source: FINRA qualification exams (2026).

Topic outline

Source: FINRA Series 63 content outline (2026).

Sample Q&A — Series 63 practice (15 questions)

Q1. What is the Uniform Securities Act?

The Uniform Securities Act is a model state securities law drafted by the National Conference of Commissioners on Uniform State Laws (now the Uniform Law Commission) and adopted in some form by most US states. The Act provides for registration of securities, broker-dealers, agents, and investment advisers; defines fraudulent practices; and authorizes state enforcement (NASAA, 2026).

Q2. What is a fiduciary duty?

A fiduciary duty is a legal obligation to act in the best interest of another party. Investment advisers have a fiduciary duty to their clients, which requires them to provide suitable advice, disclose conflicts of interest, and avoid transactions that benefit the adviser at the client's expense (SEC Investment Advisers Act of 1940, 2026).

Q3. What is the difference between an agent and an investment adviser representative?

An agent is a person who represents a broker-dealer in soliciting, negotiating, or effecting securities transactions for compensation. An investment adviser representative is a person who represents a registered investment adviser and provides investment advice for compensation. Both require state registration and Series 63 (FINRA, 2026).

Q4. What is suitability?

Suitability is the requirement that a broker-dealer or investment adviser has a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer's financial situation, investment objectives, risk tolerance, and other relevant factors. FINRA Rule 2111 codifies suitability obligations for broker-dealers (FINRA, 2026).

Q5. What is the Securities Act of 1933?

The Securities Act of 1933 (often called the 'truth in securities' law) requires that securities offered to the public be registered with the SEC or qualify for an exemption, and that investors receive a prospectus with material information about the offering. The Act is the primary federal law governing the initial issuance of securities (US Securities and Exchange Commission, 2026).

Q6. What is the Securities Exchange Act of 1934?

The Securities Exchange Act of 1934 created the SEC and regulates the secondary trading of securities. It requires broker-dealers to register with the SEC, regulates exchanges, requires periodic reporting by public companies, and prohibits manipulative and deceptive practices (US Securities and Exchange Commission, 2026).

Q7. What is a registration exemption under the Uniform Securities Act?

The Uniform Securities Act provides several registration exemptions, including: (1) federal covered securities (registered with the SEC), (2) securities listed on recognized exchanges, (3) commercial paper with a maturity of 9 months or less, (4) securities issued by government entities, and (5) private placement exemptions for sales to a limited number of accredited or sophisticated investors (NASAA, 2026).

Q8. What is an investment adviser representative?

An investment adviser representative (IAR) is a person who works for a registered investment adviser (RIA) and provides investment advice to clients. IARs must register with the state securities regulator in each state where they have clients, and must pass either the Series 65 exam (investment adviser law) or the Series 7 + Series 66 combination (FINRA, 2026).

Q9. What is insider trading?

Insider trading is the buying or selling of a security by someone who has material non-public information about the security, in violation of a fiduciary duty or other relationship of trust and confidence. Insider trading is prohibited under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 (US Securities and Exchange Commission, 2026).

Q10. What is churning?

Churning is excessive trading of a customer's account by a broker to generate commissions. Churning is a violation of FINRA rules and is also a form of fraud. A broker who recommends transactions primarily to generate commissions without regard for the customer's investment objectives may be liable for churning (FINRA Rule 2111, 2026).

Q11. What is the Investment Advisers Act of 1940?

The Investment Advisers Act of 1940 is the federal law that regulates investment advisers. The Act requires investment advisers with $100 million or more in assets under management to register with the SEC; smaller advisers register with state securities regulators. The Act defines fiduciary duty, requires adviser disclosure through Form ADV, and prohibits fraudulent practices (US Securities and Exchange Commission, 2026).

Q12. What is Form ADV?

Form ADV is the uniform registration form filed by investment advisers with the SEC or state securities regulators. Form ADV has two parts: Part 1 contains regulatory information (ownership, business practices, affiliations, disciplinary history) and Part 2 (also called the brochure) is a plain-English client disclosure document. Form ADV is publicly available through the SEC's Investment Adviser Public Disclosure (IAPD) website (US Securities and Exchange Commission, 2026).

Q13. What is a penny stock?

A penny stock is a low-priced, speculative security trading below $5 per share, often listed on OTC markets or pink sheets. Penny stocks have limited liquidity, limited public information, and high fraud risk. SEC Rule 15g-9 requires broker-dealers to disclose the risks of penny stocks and obtain customer agreement before selling (US Securities and Exchange Commission, 2026).

Q14. What is the difference between a broker-dealer and an investment adviser?

A broker-dealer effects securities transactions for customers and receives commissions. Broker-dealers have a suitability obligation but not a full fiduciary duty. An investment adviser provides ongoing investment advice for an asset-based fee. Investment advisers have a fiduciary duty to act in the client's best interest. Many states require a person to register as both if they perform both functions (FINRA, 2026).

Q15. What is the Series 63 exam waiver?

The Series 63 waiver applies to candidates who hold certain other FINRA designations, such as the Series 7 (General Securities Representative) and Series 65 (Uniform Investment Adviser Law). The Series 7 + 65 combination may waive Series 63 in some states. Candidates should check the state-specific requirements with their state securities regulator (FINRA, 2026).

Eligibility and registration steps

• Sponsorship: A registered broker-dealer or investment adviser must sponsor the candidate via FINRA Gateway (FINRA, 2026).
• Fingerprinting: Submit fingerprints through a state-approved channel (typically IdentoGO or Fieldprint).
• Form U4: The sponsoring firm files Form U4 (Uniform Application for Securities Industry Registration) on the candidate's behalf.
• State registration: Once Form U4 is filed and the candidate passes Series 63, the state registers the candidate.
• Continuing education: Registered representatives must complete FINRA's Continuing Education (CE) program annually, including the Regulatory Element and Firm Element.

Continuing education and renewal

FINRA's Continuing Education program has two parts: (1) the Regulatory Element, a computer-based training that must be completed within 120 days of the second anniversary of registration and every three years thereafter; and (2) the Firm Element, training provided by the sponsoring firm on current regulatory and compliance topics. Failure to complete the Regulatory Element results in registration lapse (FINRA, 2026).

Resources and next steps

Register for the Series 63 exam through the FINRA Gateway system after your firm has filed Form U4. Study materials include FINRA's free content outline and the Series 63 study guide from approved providers. The North American Securities Administrators Association (NASAA) publishes the model Uniform Securities Act and state-level exam information. Most candidates require 40 to 80 hours of study time to pass the exam on the first attempt (FINRA, 2026).