What Is NASD Series 6 & 63 Licensing?
NASD Series 6 & 63 Licensing are the tests required to become a limited representative. Becoming a representative requires that a person demonstrates a command of the mutual fund markets and how they work. It also requires understanding of the laws that govern the sale of mutual funds. While a representative isn't even required to have any more than a high school education, he must pass these exams before he can start to prospect, solicit and sell stocks or bonds.
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NASD
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The National Association of Securities Dealers (NASD) is now known as the Financial Industry Regulatory Authority (FINRA). It is responsible for regulating investment markets and overseeing financial representatives in those markets.
Series 6
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The Series 6 is the exam that a person must pass in order to become licensed as a Investment Company Limited Representative. Someone who holds a Series 6 can sell mutual funds, but he may not buy or sell other corporate or municipal securities.
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Series 63
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The Series 63 must be passed prior to soliciting orders of mutual funds in any state. It is a comprehensive exam on state laws and regulations.
Sponsored
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In order to take either of these tests, a person must be sponsored by a FINRA registered investment firm. In order for the licensing to be maintained, the representative must be employed by a firm with no more than two years of a gap.
Fees
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Beyond passing the Series 6 and 63 exams, representatives must maintain their annual fees in the states they intend to solicit business in. State fees vary, and representatives may not solicit in states they are not currently licensed in.
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