The Series 66 exam (known as the Uniform Combined State Law Exam) is designed for individuals who wish to become an Investment Advisor Representative (IAR). Passing the Series 66 is equivalent to taking both the Series 63 and Series 65 exams. Consequently, having a mastery of the material in these two exams is essential for passing the Series 66.

The test is composed of 100 multiple-choice questions and a score of 73% (73 out of 100) is required to pass. The test is administered by the Financial Industry Regulatory Authority (FINRA) and duration of the exam is a total of 180 minutes (3 hours). The exam materials are based on five main categories:

1. Economic Factors & Business Information: This part of the exam covers fundamental economic principles such as supply and demand, business cycles, fiscal and monetary policy, and the impact of international markets. Additionally, the exam will test your knowledge of business terminology, legal and regulatory environment, corporate finance, and financial statement analysis.

2. Investment Vehicles: On this section you will need to demonstrate understanding of the different types of investments and the respective characteristics, such as bonds, stocks, mutual funds, and derivatives. Besides that, you should also be able to explain the basics of portfolio management.

3. Client/Customer Investment Recommendations Strategies: The main goal of this section is to evaluate your ability to use the concepts explained in the previous sections. You should be able to describe how to identify and analyze investment opportunities, select appropriate investments for client’s objectives, develop financial plans, and provide suitable investing advice.

4. Laws, Regulations & Practices: This section covers information about the codes, rules and regulations which govern investment industry activities. It also includes an overview of fiduciary responsibility, external limitations and framework of the governing compliance.

5. Ethics: This part assesses knowledge of proper industry procedures, such as disclosure of personal interest, conflicts of interest, unethical practices, and fraud.

Successful completion of the Series 68 exam is required to practice as an IAR. Furthermore, to apply for the most positions in the securities sector, you must also have passed both the Series 7 and Series 66 exams. While most employers prefer you to have both certificates, the Series 66 is a great entry point for beginners. In any case, obtaining either certification will be beneficial to your career and will give you access to a much broader range of opportunities.

Therefore, if you aspire to pursue a career as an investment advisor representative, the Series 66 is an essential step. This comprehensive exam offers an in-depth understanding of the industry’s basals and current practices, making you an even more valuable asset for employers. Investing in preparation for this exam can be an essential part of your success in the field.