If you're interested in pursuing a career in securities and investment protection, you need specific certifications in order to demonstrate your ability to give sound training and reliable services in that field. In addition to years of study, this will involve taking the Uniform Combined State Law Examination, or Series 66. As we'll discuss later, you may need to take other exams, too.
But, for right now: What is the Uniform Combined State Law Examination? What does applying for it entail — and what do you do if anything relating to application or test administration doesn't go your way?
In this helpful guide to Uniform Combined State Law Examination (Series 66) issues, we'll help you identify potential roadblocks and know how to precisely handle obstacles that come your way.
Who Takes the Uniform Combined State Law Examination (Series 66)?
NASAA, or the North American Securities Administrators Association, is an agency that protects investors, purchasing consumers, and the promotion of efficient capital formation.
This group oversees a large membership of securities protection agents. People who belong to NASAA investigate situations where provincial or state law may have been violated. NASAA members also provide education to the public regarding investment fraud.
To certify prospective members or provide qualifications for people who work in this industry, NASAA has developed a series of examinations. One of these is the Uniform Combined State Law Examination, or Series 66. Candidates who take this test receive qualifications as investment adviser representatives and securities agents.
However, to achieve this result, candidates need to receive a respectable score on a grueling exam.
What Is the Uniform Combined State Law Examination (Series 66)?
The Uniform Combined State Law Examination consists of 10 pretest questions and 100 scored multiple-choice questions. These questions cover fundamentals relating to the investment industry, securities, and the nuts and bolts of fraud and transactions. People taking the test have 150 minutes, or two and a half hours, to complete all 110 questions.
Like many certifications, the Uniform Combined State Law Examination is a closed-book test. Candidates receive their test scores immediately. Taking the test once involves a fee of $177.00, plus the costs of any test-taking preparation materials the candidate decides to purchase.
According to the NASAA website, simply taking (and passing) the Uniform Combined State Law Examination isn't the only thing a candidate needs to do in order to be able to practice within the securities industry in their state. They will need to learn, abide by, and stay updated with the specific requirements and regulations pertaining to securities law in their state. Successful test-takers may also need to take additional tests or complete other activities to receive registration and licensure to practice in their state. Finally, the Uniform Combined State Law Examination is a “corequisite” exam, which means that it cannot be taken solo. Candidates need to complete both the Series 66 exam, the SIE (or the Securities Industry Essentials exam), and the FINRA Series 7 exam before they are ready to register for licensure with their state.
Applying for the Uniform Combined State Law Examination (Series 66): What You Need to Know
Candidates interested in pursuing completion of the Uniform Combined State Law Examination (Series 66) should be aware of the following application information.
Uniform Combined State Law Examination Prerequisites
In order to take the Uniform Combined State Law Examination (Series 66), there aren't any specific courses candidates must take. However, as mentioned above, simply taking the Uniform Combined State Law Examination itself is not enough to be eligible for practice in your state (or pursuing approval to practice). So, instead of specific prerequisites, the following two exams are considered “corequisites” for Series 66.
- The SIE, or the Securities Industry Essentials exam, tests how well a candidate knows the securities industry. The questions are relatively straightforward, testing how well a person knows securities industry terminology, the main products of the industry, the way the markets function, and the primary regulatory agencies.
- The FINRA Series 7 exam is alternately known as the General Securities Representative Qualification Examination. Candidates take this exam to demonstrate their ability to perform well as a general securities agent. Writing this exam helps measure how well a candidate knows the industry and how to provide vital services or advice on specific products, such as government securities, direct participation programs, variable annuities, municipal securities, and investment company securities.
Uniform Combined State Law Examination Timelines
The Uniform Combined State Law Examination is offered at in-person test centers throughout the year, or online if a candidate requires a testing accommodation. It's widely recommended that candidates set aside at least two weeks to study for the exam, or a total of about 60 hours of preparation. In order to achieve a passing grade, candidates need to submit a correct answer for 75% of the scored questions.
If you don't achieve this goal, you are able to retake the exam as many times as you'd like — but it does get more difficult to do so over time. After the first and second time you fail this examination, you must wait 30 days before retaking. If you fail for a third time, the waiting period becomes 180 days.
Each time you retake the test, you must pay the exam fee.
All of this means that if you encounter any issues during the application or administration of this test that invalidates your result or unfairly results in a failing grade, you could be out a significant amount of time and money.
Issues During the Uniform Combined State Law Examination (Series 66) Application and Administration Process
Some of the issues that could crop up — or cause FINRA, the Financial Industry Regulatory Authority, to investigate a candidate's exam-taking experience — include:
Uniform Combined State Law Examination Potential Application Irregularities
- Candidates registering for more than one account within the FINRA application portal
- Candidates registering for the exam with a FINRA account that is not their own
- Candidates allowing someone else to register for the exam using their FINRA credentials
- Candidates allowing someone else to take the exam for them, whether in-person with the incorrect identification or online with the incorrect credentials
- Providing inaccurate, false, or misleading information during the registration process
If FINRA learns that any of the above (or similar) circumstances apply to your situation, or believes that there are issues related to your application (even if those beliefs are unsupported), your test results could be brought into question.
Of course, potential issues prior to the test-taking experience are not the only ones that could be concerning to FINRA.
Uniform Combined State Law Examination Potential Test Administration Irregularities
If FINRA believes that a candidate is responsible for any of the following test administration issues, that could call the candidate's score into question:
- Referencing any unauthorized study materials brought into the examination room
- Using unauthorized electronic appliances or using authorized ones in a problematic manner (e.g., overusing a smartwatch during test administration)
- Bringing any recording equipment into the test center
- Aiding someone else during the test-taking experience
- Bringing a weapon into the test center
- Causing disturbances (up to and including violence) in the test center
- Leaving the test center during the test-taking experience
- Failing to follow procedures for taking the test online, if applicable
While being associated with any of these may not instantly disqualify a candidate or zero out their scores, FINRA will very likely launch an immediate investigation. Even if it's determined that you are not responsible for the allegations against you, the fact that you were the subject of an investigation may harm your reputation.
And, of course, if FINRA determines that you are responsible for cheating or misconduct surrounding any of its examinations, there will be consequences. These include requiring you to retake the examination, a lengthy wait before you can retake the examination or even a permanent ban on taking FINRA examinations.
If you're banned from taking any of the examinations that FINRA offers, this will necessarily have an adverse impact on your career in securities. You need to make sure that your time and resources haven't been wasted — and that you're still able to pursue the career you've been working towards. Joseph D. Lento can help you overcome Uniform Combined State Law Examination issues, so this test is less an obstacle and more the opportunity you've been preparing for.
What to Do if You Experience Uniform Combined State Law Examination (Series 66) Issues
If FINRA determines that it needs to investigate your application or test administration experiences, the group may analyze the following information:
- The data that you submitted when registering for the exam (which may include your location, your name, and relevant training or schooling)
- FINRA's own records
- The test center's records
- The testimony of any eyewitnesses to the alleged incident
While FINRA is taking time to learn more about what happened, it's likely that your scores will essentially be frozen. Since the Uniform Combined State Law Examination's scores are distributed to candidates immediately, you'll know whether you passed or failed while you're under investigation. Unfortunately, you may not be able to do anything with your scores, such as scheduling a do-over or starting to prepare for subsequent steps.
FINRA should keep you apprised of your investigation with written notices, and the group should notify you of the investigation's outcome. If FINRA has determined that your actions deserve consequences, FINRA will notify you of that, as well. You may have the opportunity to appeal by directly contacting FINRA and asking for a ban to be overturned or for the group to reconsider score disqualification, but you will need a specific rationale and strong defense in order to expect any success.
The Value of Working with an Education Lawyer Immediately
Once FINRA decides to investigate you, you need to make sure that the group doesn't violate your privacy or jump to any conclusions. You also need to ensure that FINRA abides by its own rules throughout the investigatory process so your rights are protected at every turn.
And, even if FINRA determines that some issues could be traced back to your actions, you need to be able to negotiate with FINRA to ensure that any sanctions the group recommends don't impact your entire future.
This is a lot to accomplish, and you don't have much time to work. FINRA could complete its investigation and recommend sanctions in a relatively efficient manner. Once FINRA issues a decision, you will likely only have a short window of time in which to negotiate or file an appeal.
You need to make sure you're prepared to act decisively. You also need to make sure you're putting your best foot forward with everything you say to FINRA. You need a strong argument and practiced negotiation skills. You also need specific experience dealing with these types of test-administering organizations.
That's why you retain the services of experienced education lawyer and defense advisor Joseph D. Lento. Joseph D. Lento has years of experience protecting the rights, hard work, and futures of students and test-takers across the nation. He can coach you, help you pull together evidence supporting your story, determine your best defense, and even negotiate on your behalf to help you avoid future-wreaking sanctions.
Rely on Joseph D. Lento and the Lento Law Firm Team today to safeguard all of your efforts and your future in securities. Reach out to the Lento Law Firm today to schedule a consultation and learn more about your next steps. You can reach the Lento Law Firm by filling out this form or by calling 888.535.3686 for more information.
