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NASAA Series 63 study guide

NASAA Series 63, administered by North American Securities Administrators Association (NASAA), is mapped here as 9 topic areas; the heaviest are Ethical Practices and Obligations (25%), Communication with Customers and Prospects (20%) and Regulation of Agents of Broker-Dealers (13%).

About this course: Original NASAA Series 63 practice questions, recorded lessons, memory hooks and explained answers. Start with the free introductory modules.

NASAA Series 63 at a glance

Questions
60
Time allowed
75 minutes
Passing standard
Must correctly answer at least 43 of the 60 scored questions (~72%)
Format
65 multiple-choice questions total = 60 SCORED + 5 UNSCORED pretest (candidate cannot tell which are which)
Standard / edition
Test Specifications effective June 12, 2023
Administered by
North American Securities Administrators Association (NASAA)

Source: Test Specifications effective June 12, 2023, North American Securities Administrators Association (NASAA). Confirm current details with the exam owner before you book.

Topic areas and weights

Topic areaWeightConceptsGuide
Ethical Practices and Obligations25%8Section below
Communication with Customers and Prospects20%5Section below
Regulation of Agents of Broker-Dealers13%4Section below
Regulation of Broker-Dealers12%4Section below
Remedies and Administrative Provisions11%6Topic page
Regulation of Securities and Issuers9%5Topic page
Regulation of Investment Advisers5%2Topic page
Regulation of Investment Adviser Representatives5%2Section below
Routing: Series 63 vs 65 vs 660%3Section below

Topic guides at a glance

Remedies and Administrative Provisions

11% of the course blueprint, 6 concepts. Emphasized: When does an Administrator's jurisdiction attach to an offer to sell or buy a security?, What are the Administrator's FIVE registration actions, and which are punitive vs non-punitive? and What investigatory/enforcement powers does the Administrator hold, and what CAN'T the Administrator do?.

Regulation of Securities and Issuers

9% of the course blueprint, 5 concepts. Emphasized: What is the HOWEY test for whether an instrument is a SECURITY?, What are the THREE state securities-registration methods, and when does each apply? and Exempt SECURITY or exempt TRANSACTION — what is the core distinction, and why is it the exam's #1 fail cluster?.

Regulation of Investment Advisers

5% of the course blueprint, 2 concepts. Emphasized: What is the ABC test for an INVESTMENT ADVISER, and who is excluded? and Where is the STATE vs FEDERAL dividing line for investment adviser registration?.

Study plan in this course

  1. Ethical Practices and Obligations — 8 cards · free
  2. Communication with Customers and Prospects — 5 cards · free
  3. Regulation of Agents of Broker-Dealers — 4 cards · full course
  4. Regulation of Broker-Dealers — 4 cards · full course
  5. Remedies and Administrative Provisions — 6 cards · full course
  6. Regulation of Securities and Issuers — 5 cards · full course
  7. Regulation of Investment Advisers — 2 cards · full course
  8. Regulation of Investment Adviser Representatives — 2 cards · full course
  9. Routing: Series 63 vs 65 vs 66 — 4 cards · full course

Ethical Practices and Obligations

Ethical Practices and Obligations carries 25% of the NASAA Series 63 blueprint used in this course, the largest of its 8 weighted areas. It spans 8 concepts. The course teaches it in 1 study unit: Ethical Practices and Obligations.

What Ethical Practices and Obligations covers

  • What conduct violations count as prohibited/unethical business practices for BDs and agents? — NASAA SoP on Dishonest or Unethical Business Practices of BDs and Agents
  • When does an agent need PRIOR WRITTEN authorization to exercise discretion in a customer account? — USA / NASAA SoP
  • May an agent or BD guarantee a customer against loss or promise a specific gain? — Series 63 Test Specifications VII.3
  • Under what two conditions may an agent share in the profits or losses of a customer's account? — NASAA SoP
  • Is borrowing from or lending money to a customer allowed? — NASAA SoP
  • What custody obligation applies to customer funds and securities? — Series 63 Test Specifications VIII.2
  • When may client brokerage commissions pay for research or brokerage services? — Securities Exchange Act of 1934 §28
  • What does the NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation permit? — NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation

Official references for Ethical Practices and Obligations

  • NASAA SoP on Dishonest or Unethical Business Practices of BDs and Agents
  • USA / NASAA SoP
  • Series 63 Test Specifications VII.3
  • NASAA SoP
  • Series 63 Test Specifications VIII.2
  • Securities Exchange Act of 1934: §28
  • NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation

In the app this area comes with 8 memory cards and 15 module-quiz questions and is part of the free starting modules.

Communication with Customers and Prospects

Communication with Customers and Prospects carries 20% of the NASAA Series 63 blueprint used in this course, the second-largest of its 8 weighted areas. It spans 5 concepts. The course teaches it in 1 study unit: Communication with Customers and Prospects.

What Communication with Customers and Prospects covers

  • Which rules govern broker-dealer books and records — records that must be MADE vs PRESERVED? — SEC Rules 17a-3, 17a-4
  • How does FINRA Rule 2210 classify communications with the public? — FINRA Rule 2210
  • Is it lawful to represent that a state registration means the Administrator has approved a security or a person? — USA
  • Who sets INITIAL margin vs MAINTENANCE margin requirements?
  • What does SEC Regulation S-P require firms to give customers regarding privacy? — SEC Regulation S-P

Official references for Communication with Customers and Prospects

  • SEC Rules 17a-3: 17a-4
  • FINRA Rule: 2210
  • USA
  • SEC Regulation S-P

In the app this area comes with 5 memory cards and 12 module-quiz questions and is part of the free starting modules.

Regulation of Agents of Broker-Dealers

Regulation of Agents of Broker-Dealers carries 13% of the NASAA Series 63 blueprint used in this course, the third-largest of its 8 weighted areas. It spans 4 concepts. The course teaches it in 1 study unit: Regulation of Agents of Broker-Dealers.

What Regulation of Agents of Broker-Dealers covers

  • Who is an AGENT under the USA — individual or entity? — USA §401
  • When is an individual representing an ISSUER excluded from 'agent' status? — USA §401
  • How does an agent register, and what happens to that registration on termination? — USA §§201–204, 401
  • What do FINRA Rules 3210 and 2040 require of agents? — FINRA Rules 3210, 2040

How Regulation of Agents of Broker-Dealers connects to other areas

Official references for Regulation of Agents of Broker-Dealers

  • USA: §401
  • USA §§201–204: 401
  • FINRA Rules 3210: 2040

In the app this area comes with 4 memory cards and 8 module-quiz questions in the full course.

Regulation of Broker-Dealers

Regulation of Broker-Dealers carries 12% of the NASAA Series 63 blueprint used in this course, the 4th-largest of its 8 weighted areas. It spans 4 concepts. The course teaches it in 1 study unit: Regulation of Broker-Dealers.

What Regulation of Broker-Dealers covers

  • What is a BROKER-DEALER under the USA, and who is excluded from the definition? — USA §401
  • How does a broker-dealer register at the state and federal level? — USA §§201–204, 401
  • What limits the no-place-of-business broker-dealer exclusion, and is an agent automatically covered? — USA §401
  • What does FINRA Rule 3110 require of a firm? — FINRA Rule 3110

How Regulation of Broker-Dealers connects to other areas

Official references for Regulation of Broker-Dealers

  • USA: §401
  • USA §§201–204: 401
  • FINRA Rule: 3110

In the app this area comes with 4 memory cards and 7 module-quiz questions in the full course.

Regulation of Investment Adviser Representatives

Regulation of Investment Adviser Representatives carries 5% of the NASAA Series 63 blueprint used in this course, the 8th-largest of its 8 weighted areas. It spans 2 concepts. The course teaches it in 1 study unit: Regulation of Investment Adviser Representatives.

What Regulation of Investment Adviser Representatives covers

  • Who is an INVESTMENT ADVISER REPRESENTATIVE — individual or entity? — USA §401
  • Does a FEDERAL COVERED adviser's IAR register federally too, or at the state level? — SEC Rule 203A-1

How Regulation of Investment Adviser Representatives connects to other areas

Official references for Regulation of Investment Adviser Representatives

  • USA: §401
  • SEC Rule: 203A-1

In the app this area comes with 2 memory cards and 3 module-quiz questions in the full course.

Routing: Series 63 vs 65 vs 66

Routing: Series 63 vs 65 vs 66 is one of the 9 areas in this course's NASAA Series 63 blueprint. It spans 3 concepts. The course teaches it in 1 study unit: Routing: Series 63 vs 65 vs 66.

What Routing: Series 63 vs 65 vs 66 covers

  • What does the Series 63 test, and what prerequisite/corequisite does it require? — NASAA Series 63 Study Guide §1
  • What does the Series 65 test, and how does it differ from the Series 63? — NASAA General Exam Information
  • Who typically needs the Series 63, and why can't Series-6-only reps use the 66 route instead? — NASAA General Exam Information

Official references for Routing: Series 63 vs 65 vs 66

  • NASAA Series 63 Study Guide: §1
  • NASAA General Exam Information
  • NASAA General Exam Information page

In the app this area comes with 4 memory cards and 4 module-quiz questions in the full course.

Details that change — checked against official sources

Official references

  • NASAA SoP on Dishonest or Unethical Business Practices of BDs and Agents
  • USA / NASAA SoP
  • Series 63 Test Specifications VII.3
  • NASAA SoP
  • Series 63 Test Specifications VIII.2
  • Securities Exchange Act of 1934: §28
  • NASAA Model Act to Protect Vulnerable Adults from Financial Exploitation
  • SEC Rules 17a-3: 17a-4
  • FINRA Rule: 2210, 3110
  • USA: §401, §204, §410, §101, §402
  • SEC Regulation S-P
  • USA §§201–204: 401
  • FINRA Rules 3210: 2040
  • USA §§414: 610
  • USA §§407: 408
  • USA §§409: 410

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