What's the difference between the Series 65 and the Series 7?
The Series 65 and Series 7 are two different securities exams that authorize two different jobs. The Series 65 — formally the Uniform Investment Adviser Law Examination — qualifies a person to act as an Investment Adviser Representative, or IAR, of a Registered Investment Adviser firm. IARs are paid fees by clients and operate under the fiduciary duty of the Investment Advisers Act of 1940. The Series 7 — the General Securities Representative Qualification Examination — qualifies a person to act as a stockbroker or registered representative of a broker-dealer. Brokers are paid commissions and operate under the lower Regulation Best Interest standard. The license predicts the pay model, and the pay model predicts the duty.
What each exam covers
The Series 65 is administered by NASAA and runs 130 questions over 180 minutes, with a 72.5% passing score. It focuses on investment adviser laws, ethics, and fiduciary obligations. The Series 7 is administered by FINRA and runs 125 questions over 225 minutes, with a 72% passing score. It focuses on the products a broker can sell — stocks, bonds, options, packaged products — and the supervisory rules around them.
Why this matters for the consumer
A person with only the Series 65 cannot legally sell you a commission-based product. They can only charge fees. A person with the Series 7 can sell you commission products. A person with both — dual-registered — can do either, depending on the conversation, the account type, and which firm they are speaking for at the moment.
Concretely:
- Series 65 only. Fee-only IAR at an RIA. Bound by federal fiduciary duty. Cannot earn commissions.
- Series 7 only. Pure broker. Bound by Reg BI. Cannot give ongoing fee-based investment advice.
- Series 65 and Series 7 (dual-registered). Can switch hats. Bound by fiduciary duty when wearing the IAR hat, by Reg BI when wearing the broker hat. The hardest case to read.
How to check which licenses your advisor holds
Look up the advisor on BrokerCheck. The "Registrations" tab shows every securities exam they have passed and every firm they are affiliated with. If you see a Series 7 next to a current broker-dealer registration, the advisor can sell commission products. If you see a Series 65 next to a current investment adviser registration, the advisor can give fee-only advice. If you see both, ask which capacity the advice you are receiving falls under, and get the answer in writing.
What about the Series 66?
The Series 66 is a combination exam that, paired with a Series 7, qualifies the person to act as an IAR. It does not change the fiduciary analysis. A Series 7 plus Series 66 advisor is dual-registered, same as a Series 7 plus Series 65 advisor.