Introduction
While passing the Series 63 can seem daunting, it is predictable, and the material can be mastered by anyone who is willing to commit the time. That’s because NASAA, the North American Securities Administrators Association, which designs the exam, has outlined everything you need to know, as well as given samples of the question formats. The NASAA does try to make the exam more difficult by writing questions that can seem tricky and nuanced. But if you’ve learned the material, you will have an excellent chance of success. Most of you who will be taking this exam will be working for broker-dealers, so most of the rules and regulations on the exam apply to broker-dealers and their representatives. But NASAA also wants you to know about firms that give advice on securities as well. This means you will be tested on rules and regulations related to investment advisers and their representatives as well.
This study guide is organized into five chapters based on the content of the exam and on the NASAA’s Series 63 content outline. There is also a sixth chapter that we added to familiarize you with federal securities acts, about which the exam assumes you will be knowledgeable. Notice that there is also the number of questions you will see on the exam from each chapter. Knowing how many questions come from each chapter will help you to organize your time and devote the appropriate amount of time to each chapter.
• Chapter One: Regulation of Investment Advisers and Investment Adviser Representatives—6 questions (10%)
• Chapter Two: Regulation of Broker-Dealers and Agents—18 questions (30%)
• Chapter Three: Securities, Issuers and Administrative Provisions—9 questions (15%)
• Chapter Four: Communications with Clients and Prospects—12 questions (20%)
• Chapter Five: Ethical Practices and Obligations—15 questions (25%)
• Chapter Six: Federal Securities Acts—0 questions (background knowledge)
The key to passing