The Series 63 exam is a critical requirement for securities professionals who want to operate legally at the state level in the United States. Administered by FINRA and developed by NASAA, the Series 63 ensures that registered representatives understand state securities laws, ethical standards, and investor protection rules. For anyone seeking to conduct business across U.S. jurisdictions, it is a foundational step toward full regulatory compliance.
Navigating the U.S. Regulatory Map
For anyone building a career in securities or expanding a brokerage footprint across states, the challenge isn’t only about finding deal flow — it’s about earning the right to operate.
In the U.S., securities regulation functions on two layers: federal oversight from the SEC and state-level enforcement through local securities administrators.
To bridge those layers, most representatives must pass the Series 63 exam, formally known as the Uniform Securities Agent State Law Examination.
Created by the North American Securities Administrators Association (NASAA) and administered by FINRA, the Series 63 ensures that professionals understand the “blue sky laws” — the state-level statutes that protect investors from fraud and misconduct.
It is a core requirement for state registration across most U.S. jurisdictions.
What Is the Series 63 Exam?
The Series 63 is designed to test a candidate’s knowledge of state securities regulations, fiduciary duties, and ethical standards. While exams like the Series 7 or Series 79 qualify you at the federal level, the Series 63 is often the missing piece required to conduct business within individual states.
Key facts:
- Developed by NASAA, administered by FINRA
- 65 multiple-choice questions, 60 of which are scored
- 75 minutes to complete
- Passing score: 72 % (43 correct)
- Cost: $147
- Retake rules: 30-day wait after 1st and 2nd attempts; 180 days after the third and any subsequent failures
(Sources: FINRA, NASAA)
Unlike federal exams that emphasize products or market mechanics, Series 63 centers on ethics, registration requirements, and prohibited practices under state law.
Why You Need It for State Registration
1. State-Level Authorization
Every U.S. state has its own securities regulator. Most states require Series 63 or an equivalent state law exam, depending on registration pathway. Without it, you cannot legally discuss or sell securities to investors in that jurisdiction.
2. Complement to Federal Licenses
The Series 63 does not stand alone — it complements FINRA licenses like the Series 7, 79, or 82. Together, they form the dual foundation required for full compliance: one federal, one state.
3. Uniform Standards Across States
The Series 63 establishes a baseline of knowledge across jurisdictions. It ensures that every registered agent understands the same core legal and ethical responsibilities — even as local laws differ.
4. A Signal of Trust
Beyond compliance, the Series 63 signals credibility. For broker-dealers and firms seeking partnerships or new markets, having Series 63-licensed representatives shows a commitment to regulatory excellence and investor protection.
Inside the Exam: What It Covers
The Series 63 exam content is divided into two main areas: state securities law and registration, and business practices and ethics.
Ethical judgment is central to the Series 63. Candidates must be able to identify regulatory red flags such as churning, front-running, misrepresentation, failure to disclose material facts, or unsuitable recommendations, and understand the disciplinary actions and remedies state regulators may impose.
(See: NASAA Series 63 Exam Content Outline PDF)
How States Use the Series 63
The exam serves as the common denominator for 50 state regulators. Passing it demonstrates sufficient knowledge for registration — though some states layer additional forms or fees on top.
A few jurisdictions (such as Colorado or Florida) have limited exemptions, but for the majority, Series 63 remains the universal threshold for lawful solicitation.
It’s what transforms a qualified broker into a registered representative.
Common Misconceptions
- “I already have Series 7, I don’t need 63.”
Not true — Series 7 qualifies you federally, not at the state level. - “It’s just a formality.”
State regulators actively monitor compliance. Operating without proper state registration can lead to fines or disciplinary action. - “Passing once is enough forever.”
While the exam credential does not expire, active registration and continuing education requirements still apply through your broker-dealer affiliation.
What It Means for Independent Bankers
For independent or international professionals affiliating with a U.S. broker-dealer, Series 63 is often part of the onboarding and registration process. It formalizes your eligibility to conduct business in multiple states under the firm’s umbrella.
At Finalis, many members pursue the Series 63 to expand their reach while maintaining full compliance with both FINRA and state regulations. The exam may be standardized, but the implications are strategic: it’s the difference between opportunity limited by geography — and opportunity limited only by ambition.
It can be challenging to determine which exams are appropriate for your specific line of business. To help, we've provided a list of the most common FINRA qualification exams for those looking to establish and grow a career in M&A, investment banking, or becoming a placement agent.
Preparing for the Series 63
- Review NASAA’s official Study Guide
- Use practice exams from reputable providers (Kaplan, STC, Solomon, etc.)
- Focus on ethics and state procedures, not just memorization
- Schedule the exam through FINRA or your firm’s compliance department
The Finalis Perspective
In an era of automation and digital infrastructure, regulatory fluency is the new competitive edge. The Series 63 isn’t simply a test — it’s a declaration that a professional understands the rules of engagement in every state where capital moves.
The Series 63 exam is more than a regulatory checkbox — it’s the foundation of state-level trust. For anyone representing a broker-dealer or planning to do business across U.S. jurisdictions, it’s both a requirement and a competitive differentiator.
Passing it signals you’re ready to operate with transparency, ethics, and professionalism — values that define the next generation of dealmakers.
