How to Study for the Series 63

1. Read the official exam guide

   Official Series 63 exam guide (NASAA (content owner/developer) / FINRA (administers the exam)) ↗

2. Know what the exam covers

   • Regulations of Investment Advisers, Including State-Registered and Federal Covered Advisers5%

     • Definitions of Investment Advisers

       Covers what legally makes a person or firm an 'investment adviser' under state and federal definitions.

     • Activities requiring registration and exclusions from registration

       Covers which advisory activities trigger state or federal registration duties, and which professionals or activities are excluded.

   • Regulations of Investment Adviser Representatives5%

     • Definition of an Investment Adviser Representative

       Covers who qualifies as an IAR under the Uniform Securities Act.

     • Activities requiring registration and exclusions from registration

       Covers which functions performed by an individual require IAR registration, and carve-outs from that requirement.

   • Regulations of Broker-Dealers12%

     • Definition of a Broker-Dealer

       Covers how a firm is classified as a broker-dealer versus other market participants.

     • Registration and post-registration requirements

       Covers the process and ongoing obligations of state broker-dealer registration, plus which firms or activities are exempt.

     • Broker-Dealer Agent supervision

       Covers a firm's duty to supervise its registered agents' conduct and sales activity.

   • Regulations of Agents of Broker-Dealers13%

     • Definition of an Agent of a Broker-Dealer

       Covers the legal definition of an 'agent' who sells securities on behalf of a broker-dealer or issuer.

     • Registration and post-registration requirements

       Covers agent registration steps, activities that trigger or are excluded from registration, and required uniform-form updates (e.g., Form U4) as an agent's circumstances change.

   • Regulations of Securities and Issuers9%

     • Definition of securities and issuers

       Covers what counts as a 'security' (including the Howey test) and who is an issuer.

     • State registration and post-registration requirements

       Covers the process for registering securities offerings at the state level.

     • Exemptions from registration

       Covers which securities or transactions are exempt from state registration requirements.

     • State enforcement and antifraud authority

       Covers state regulators' power to police fraudulent securities offerings.

   • Remedies and Administrative Provisions11%

     • Authority of state securities Administrator

       Covers the powers granted to a state's chief securities regulator, including investigation and rulemaking authority.

     • Administrative actions

       Covers regulatory remedies such as denial, suspension, or revocation of registration.

     • Other penalties and liabilities

       Covers civil and criminal liability that can result from securities law violations, including private rights of action.

   • Communication with Customers and Prospects20%

     • Required product disclosures

       Covers information that must be disclosed to customers about a product before or at the time of sale.

     • Unlawful representations concerning broker-dealer agent registration

       Covers the rule that agent registration cannot be implied as a regulatory endorsement of the agent's competence.

     • Performance guarantees prohibition

       Covers the ban on promising or guaranteeing investment returns to customers.

     • Customer agreements (new account, margin, options)

       Covers required documentation and disclosures when opening standard, margin, or options-trading accounts.

     • Correspondence and advertising (social media, email/digital messaging, website/internet communications)

       Covers recordkeeping and content rules for customer communications across traditional and digital/social channels.

   • Ethical Practices and Obligations25%

     • Compensation (fees, commissions, markups, disclosure of compensation)

       Covers permissible ways agents and firms are paid and the duty to disclose compensation arrangements to clients.

     • Customer funds and securities (custody, discretion, trading authorization, standard of care)

       Covers rules on holding client assets, exercising discretionary authority, and the fiduciary/suitability standards owed to customers.

     • Conflicts of interest, criminal activities, and other ethics issues

       Covers prohibited conduct including excessive trading (churning), improper loans with customers, sharing in account profits/losses, insider trading, selling away, market manipulation, undisclosed outside accounts, financial exploitation of vulnerable adults, and other dishonest practices.

3. Practice by topic

   • Administrative Provisions and Enforcement
   • Antifraud Provisions
   • Broker-Dealer and Agent Registration
   • Client Types and Compensation
   • Fiduciary Duty
   • Investment Adviser Registration
   • Post-Registration Requirements
   • Prohibited Communications
   • Suitability and Communications
   • Unethical Practices: Broker-Dealers and Agents
   • Unethical Practices: Investment Advisers

4. Try mixed practice questions

   Series 63 practice questions with answers

5. Compare the Series 63 with other exams

   • Series 63 vs Series 65