My personal experience is that, if you are learning from zero (no previous exposure and experience in the area) is it takes a LOT more time than you mentioned to pass the exam, and it can not be memorized to pass! Some facts need memorization and keeping track of what applies to State vs federal registrations and rules, besides the few things you need to memorize, you have got to understand the concept to pass, because the exam is tricky and hard. I am trying my second attempt on Monday (Please wish me luck!!!)
I believe that you made the comment that passing your Series 65 is similar to passing the Life/Health Exam or the 6 & 63. I've been in the industry for 22 years. I can tell you that without a doubt, the Series 65 exam is not even in the same universe as the the life/health exams and some of the other securities tests!! I could have passed my insurance exams with my eyes closed....NOT the case with the 65. The Series 65 requires a TON of studying and a crazy amount of information to memorize! Just my opinion....
Wow, thank you so much for your input! I’m starting a blockfund but my investors insist I take this test beforehand. This video has made me a lot more comfortable on what to know going ahead.
Series 66 = 63 + 65 in one exam. However, you cannot have a Series 66 without a Series 7. These two go together. However, if you're leaving a B/D in order to form an RIA, it is my understanding that you can use the Series 66 alone - without taking the 65 - to be an RIA/IAR.
Hey mike great video. Just to clarify 100%, if you take and pass the 65, become a standalone RIA, can you then buy and sell securities on behalf of a client without a series 7/63? Or is there another series exam you must pass to trade securities on behalf of a client as a standalone RIA?
@Bob Yes, you are correct that you can manage securities on behalf of a client as a standalone RIA with a Series 65. There is no need for a Series 7/63. The Series 7/63 is required if you want to earn a commission FOR selling those securities; the Series 65 is what you need if it's the client who will be paying you a fee for the service.
Hi Mr. Kitces. I would like to ask you two things: 1. Is this true: Series 65 license authorizes licensees to sell virtually any type of individual security? 2. Does Bitcoin count as virtual security?
The Series 65 permits you to charge a fee to MANAGE securities (and at that point, you can choose to buy whatever you wish on behalf of your clients... with the caveat that you have personal fiduciary liability if that is not actually an appropriate investment for them!). You need a Series 6 (for mutual funds) or Series 7 (for most other securities) to actually get paid to SELL the securities (i.e., a commission for their sale). But it's crucial to understand there's a difference (and a very different legal standard) between getting paid a commission to SELL something, and getting paid a fee by the client themselves to manage something on their behalf. The Series 65 is for the latter, not the former.
I’ve been out of finance for a little less than 2 years. I had/have my series 7 & 66. My previous firm only held the 63 portion of my 66. I need to pass either the 65 or 66 in the next 2-3 weeks. What do you recommend? Also, I agree with Testeachers although they recently merged with another company and I’m not sure if the material is the same. I think they were phenomenal. My current firm has me using Kaplan. I hate it and I believe it’s not updated based on the new Tax laws Trump put in place. What do you recommend for answering questions on the test that might be affected by the new laws? Thank You
Does anybody know if I need the series 65 exam if I start a small investment company that will be exempt from state or federal registration (i.e. less than 5 clients in any given state, not publicly advertised, money under management less than $ 1 Million)? Or does anybody that takes fees for investment advice need the 65 (or similar), independent of registration requirements? Location is Illinois in the USA. Thank you!
Yes, in fact the ONLY way to manage a client's assets and charge an AUM fee is to have a Series 65 and be affiliated with an RIA (either by creating your own, or working under a corporate RIA). The Series 6/7 exams are to earn commissions for selling investment products, not to receive an advisory fee (and there's no obligation or reason to even have a Series 6/7 sales license if your sole goal is to receive AUM or other types of advisory fees). See www.kitces.com/blog/registered-investment-adviser-requirements-series-65-exam-timing/ for some further details.
14:55 There are people who have every degree, designation, license & prestigious titles that are managing peoples life’s savings into the ground. None of those other things Or a test to get a license proves you can manage money. No CFP no CFA no one & no one proves they can manage risk before they get someone’s life’s savings. So a simple test is good enough neither is being overly tested or educated. Unless you want everyone to prove they can manage money by matching or out performing the benchmark which would lead to the MAJORITY of advisors OUT of the business It’s good enough to those passing a 3 hour test a shot.
Gary, The IAR is the person, the Investment Adviser REPRESENTATIVE. They represent the firm, which is the RIA (entity). Although an individual can own an RIA, which means with a solo RIA, the individual owns their RIA and is the IAR of their own RIA. And thus why they're sometimes used more interchangeably. (Unlike in a broker-dealer, where it's generally not feasible to individually own your own B/D due to regulatory costs and capital requirements.)
Thank you Michael. No one has given me this simple exacting answer. So an IAR MUST work for an RIA ? Are you and RIA ? I write life insurance and FIxed/Indexed Annuities for only 2 carriers with no plans to get Series 6 or 7 so I'm questioning whether the 65 is worth my while ? What would affiliating with your RIA give me ? Thx.
Gary, Our RIA isn't looking to add IAR affiliates. But in general, affiliating with an RIA gives you the opportunity to earn investment advisory fees. Just as you can't get paid an insurance commission without being affiliated to an insurance carrier and having the appropriate license, you can't get paid an advisory fee without being affiliated to an RIA and having the appropriate license. This applies for both investment management fees (e.g., AUM fees), as well as any other kind of advice fee (e.g., a fee for a financial plan).
The CFP is becoming less and less relevant every year. The bachelors requirements should be dropped. Having a bachelors degree doesn’t mean much these days.
I highly respect this guy. I'd literally pay money to hang out with him.
Appreciate your efforts and tenacity. Such a role model 👍🏼
Thanks Muneer! Best wishes to you in your journey! :)
- Michael
Having taken the time to answer my questions proves to me you are a gentleman. Thx.
My personal experience is that, if you are learning from zero (no previous exposure and experience in the area) is it takes a LOT more time than you mentioned to pass the exam, and it can not be memorized to pass! Some facts need memorization and keeping track of what applies to State vs federal registrations and rules, besides the few things you need to memorize, you have got to understand the concept to pass, because the exam is tricky and hard. I am trying my second attempt on Monday (Please wish me luck!!!)
Good luck and best wishes to you!
Took me months
I believe that you made the comment that passing your Series 65 is similar to passing the Life/Health Exam or the 6 & 63. I've been in the industry for 22 years. I can tell you that without a doubt, the Series 65 exam is not even in the same universe as the the life/health exams and some of the other securities tests!! I could have passed my insurance exams with my eyes closed....NOT the case with the 65. The Series 65 requires a TON of studying and a crazy amount of information to memorize! Just my opinion....
This was absolutely excellent! Everything I didn't even know to ask!
Wow, thank you so much for your input! I’m starting a blockfund but my investors insist I take this test beforehand. This video has made me a lot more comfortable on what to know going ahead.
wow, that cleared my question up! Thanks buddy
GREAT VIDEO!!!! This was so incredibly helpful!
Series 66 = 63 + 65 in one exam. However, you cannot have a Series 66 without a Series 7. These two go together. However, if you're leaving a B/D in order to form an RIA, it is my understanding that you can use the Series 66 alone - without taking the 65 - to be an RIA/IAR.
Kaplan is awesome this guy is correct
Awesome. Thanks Michael!
Hey mike great video. Just to clarify 100%, if you take and pass the 65, become a standalone RIA, can you then buy and sell securities on behalf of a client without a series 7/63? Or is there another series exam you must pass to trade securities on behalf of a client as a standalone RIA?
@Bob Yes, you are correct that you can manage securities on behalf of a client as a standalone RIA with a Series 65. There is no need for a Series 7/63. The Series 7/63 is required if you want to earn a commission FOR selling those securities; the Series 65 is what you need if it's the client who will be paying you a fee for the service.
@@MichaelKitces thank you very much for clearing that up Mike!!!
Hi Mr. Kitces. I would like to ask you two things: 1. Is this true: Series 65 license authorizes licensees to sell virtually any type of individual security? 2. Does Bitcoin count as virtual security?
The Series 65 permits you to charge a fee to MANAGE securities (and at that point, you can choose to buy whatever you wish on behalf of your clients... with the caveat that you have personal fiduciary liability if that is not actually an appropriate investment for them!).
You need a Series 6 (for mutual funds) or Series 7 (for most other securities) to actually get paid to SELL the securities (i.e., a commission for their sale).
But it's crucial to understand there's a difference (and a very different legal standard) between getting paid a commission to SELL something, and getting paid a fee by the client themselves to manage something on their behalf. The Series 65 is for the latter, not the former.
Is there a way i can listen to the info. on my phpone while i drive around to learn it before i take the test?
Great presentation
I’ve been out of finance for a little less than 2 years. I had/have my series 7 & 66. My previous firm only held the 63 portion of my 66. I need to pass either the 65 or 66 in the next 2-3 weeks. What do you recommend?
Also, I agree with Testeachers although they recently merged with another company and I’m not sure if the material is the same. I think they were phenomenal.
My current firm has me using Kaplan. I hate it and I believe it’s not updated based on the new Tax laws Trump put in place. What do you recommend for answering questions on the test that might be affected by the new laws?
Thank You
Does anybody know if I need the series 65 exam if I start a small investment company that will be exempt from state or federal registration (i.e. less than 5 clients in any given state, not publicly advertised, money under management less than $ 1 Million)? Or does anybody that takes fees for investment advice need the 65 (or similar), independent of registration requirements? Location is Illinois in the USA. Thank you!
If I have a Series 65 but not a Series 6 or 7, can I still manage a client's assets and charge an AUM fee?
Yes, in fact the ONLY way to manage a client's assets and charge an AUM fee is to have a Series 65 and be affiliated with an RIA (either by creating your own, or working under a corporate RIA). The Series 6/7 exams are to earn commissions for selling investment products, not to receive an advisory fee (and there's no obligation or reason to even have a Series 6/7 sales license if your sole goal is to receive AUM or other types of advisory fees). See www.kitces.com/blog/registered-investment-adviser-requirements-series-65-exam-timing/ for some further details.
@@MichaelKitces That answer was very helpful. I was curious about that specific detail myself.
Count on 5 - 6 weeks of hard Diligent daily study for the series 65 and you will pass
14:55
There are people who have every degree, designation, license & prestigious titles that are managing peoples life’s savings into the ground.
None of those other things
Or a test to get a license proves you can manage money.
No CFP no CFA no one
& no one proves they can manage risk before they get someone’s life’s savings.
So a simple test is good enough neither is being overly tested or educated.
Unless you want everyone to prove they can manage money by matching or out performing the benchmark
which would lead to the MAJORITY of advisors
OUT of the business
It’s good enough to those passing a 3 hour test a shot.
I love this
Series 65 is the IAR but you've often refer to RIA in this video. Must an IAR be "associated" with an RIA to be able to practice ?
Gary,
The IAR is the person, the Investment Adviser REPRESENTATIVE. They represent the firm, which is the RIA (entity).
Although an individual can own an RIA, which means with a solo RIA, the individual owns their RIA and is the IAR of their own RIA. And thus why they're sometimes used more interchangeably. (Unlike in a broker-dealer, where it's generally not feasible to individually own your own B/D due to regulatory costs and capital requirements.)
Thank you Michael. No one has given me this simple exacting answer. So an IAR MUST work for an RIA ? Are you and RIA ? I write life insurance and FIxed/Indexed Annuities for only 2 carriers with no plans to get Series 6 or 7 so I'm questioning whether the 65 is worth my while ? What would affiliating with your RIA give me ? Thx.
Gary,
Our RIA isn't looking to add IAR affiliates.
But in general, affiliating with an RIA gives you the opportunity to earn investment advisory fees. Just as you can't get paid an insurance commission without being affiliated to an insurance carrier and having the appropriate license, you can't get paid an advisory fee without being affiliated to an RIA and having the appropriate license. This applies for both investment management fees (e.g., AUM fees), as well as any other kind of advice fee (e.g., a fee for a financial plan).
So if you don't have a Bachelor's degree which you need to be a CFP ... you don't know what you are doing ..?
Where you can get practice questions???
Kaplan is great for the Aries 65
Nice video, but damn... where's the meat?
series 65 is not as hard as the series 7
UltraRun duh
The CFP is becoming less and less relevant every year. The bachelors requirements should be dropped. Having a bachelors degree doesn’t mean much these days.
BS! I have my life and health series 6 and 63 and have taken it 2x and failed by 2 points it’s a hard exam nothing like life and health beware!
This video would have been MUST BETTER without the host using so many acronyms.