Free Series 65 Practice Exam
More than 1,000 questions · Updated Nov 3, 2026
The Series 65 (Uniform Investment Adviser Law Examination) meets the exam requirement for investment adviser representative registration in most states, covering laws, regulations, ethics, and investment topics.
Series 65 at a glance
- Number of questions
- 140 total (130 scored + 10 unscored/pretest)
- Time
- 180 minutes
- Passing score
- 92 of 130 scored questions correct (approximately 71%)
Full exam format
Exam format: 130 scored multiple-choice questions plus 10 unscored (pretest) questions, 180 minutes, closed-book. Passing score: 92 of 130 scored questions correct (approximately 71%). Prerequisites: None. No sponsoring firm, no prior exams (e.g., SIE, Series 7), and no degree or experience requirement. Candidates can register independently. This site has more than 1,000 free Series 65 practice questions with explanations.
Try a few Series 65 questions
A client's risk questionnaire produces a moderate risk-tolerance score, but during the interview the client states, 'I can't stomach seeing my account drop more than 5% in a year.' How should the adviser reconcile this in the IPS?
- A.Rely solely on the quantitative questionnaire score because it is more objective
- B.Disregard the client's verbal statement as non-binding conversation
- C.Give meaningful weight to the client's stated qualitative concerns, since they may reveal a lower actual risk tolerance than the questionnaire captured
- D.Automatically average the questionnaire score with an assumed numeric value for the verbal statement
Show answer and explanationHide answer
Correct answer: C. Give meaningful weight to the client's stated qualitative concerns, since they may reveal a lower actual risk tolerance than the questionnaire captured
Risk-tolerance questionnaires are a useful data point but not infallible; a client's explicit qualitative statements about loss tolerance should be incorporated and, where they conflict, often given significant or controlling weight, since suitability determinations must reflect the whole client picture, not just a single score.
- A. Relying solely on the quantitative score ignores directly relevant qualitative information the client just provided about actual loss tolerance.
- B. A client's explicit statement about loss tolerance is meaningful data for the IPS and shouldn't be dismissed as mere conversation.
- C. The client's stated concern about a 5% drawdown limit reveals qualitative information that may indicate lower real risk tolerance than the questionnaire captured, and a prudent adviser gives it meaningful weight alongside the score.
- D. There's no standard formulaic method of averaging a numeric questionnaire score with an assumed value for a verbal statement; judgment and disclosure, not mechanical averaging, govern reconciliation.
Which of the following is an example of monetary policy, as opposed to fiscal policy?
- A.Changes in the federal individual income tax rate
- B.Increased government spending on infrastructure projects
- C.Open market operations conducted by the Federal Reserve
- D.A Congressional appropriations bill
Show answer and explanationHide answer
Correct answer: C. Open market operations conducted by the Federal Reserve
Monetary policy is the Federal Reserve's control of the money supply and credit conditions, implemented primarily through open market operations, the discount rate, and reserve requirements. Fiscal policy is the government's use of taxing and spending, carried out by Congress and the President. Choices A, B, and D are all fiscal policy actions (tax rates, spending, and appropriations); only C is a Fed (monetary) action.
- A. Changes in income tax rates are a fiscal policy tool, set by Congress, not monetary policy.
- B. Government spending on infrastructure is a fiscal policy action carried out by the legislative and executive branches, not the Federal Reserve.
- C. Correct. Open market operations. The Fed buying or selling government securities to influence the money supply and interest rates. Are a classic monetary policy tool.
- D. A Congressional appropriations bill is a fiscal policy action, not a monetary policy tool used by the Federal Reserve.
An investment adviser recommends a proprietary mutual fund that pays the adviser's firm a 12b-1 fee, without disclosing this compensation to the client. This conduct most directly violates which fiduciary component?
- A.Duty of care, because the fund is per se unsuitable for the client
- B.Duty of best execution, because the fund charges excessive expenses
- C.Duty of loyalty, because the adviser failed to disclose a material conflict of interest
- D.Duty of suitability, because 12b-1 fees are per se prohibited for advisory accounts under federal law
Show answer and explanationHide answer
Correct answer: C. Duty of loyalty, because the adviser failed to disclose a material conflict of interest
The duty of loyalty requires an adviser to place the client's interests first and to disclose all material conflicts of interest, including compensation arrangements like 12b-1 fees that could bias a recommendation. Receiving such fees is not automatically prohibited or automatically unsuitable. The violation here is the failure to disclose, which is a loyalty issue, not a suitability, care, or best-execution issue per se.
- A. Overstates the problem. The fund isn't automatically unsuitable merely because it pays a 12b-1 fee.
- B. Best execution concerns trade execution quality, not fee-disclosure conflicts.
- C. Correct. Nondisclosure of compensation that creates a conflict of interest is a duty-of-loyalty violation.
- D. Incorrect claim: no federal law prohibits 12b-1 fees for advisory accounts; the issue is nondisclosure of the conflict, not the fee's existence.
Practice the Series 65
Work through exam-style questions for the Uniform Investment Adviser Law Examination (Series 65), one at a time, with an explanation after each answer. No account required. Sign in only if you want your progress synced across devices.
Questions are drafted with help from AI and published only after a person reviews and approves them. How these questions are made
What’s on the Series 65
Economic Factors and Business Information15%
Basic Economic Concepts
Covers business cycles, monetary and fiscal policy, global/currency and geopolitical factors, inflation and deflation, interest rates and yield curves, and core economic indicators like GDP, employment data, trade deficit, and CPI.
Financial Reporting
Covers reading core financial statements (income statement, balance sheet, cash flow statement), auditor opinions, SEC filings and annual reports, and the distinction between audited/unaudited and cash/accrual accounting.
Analytical Methods
Covers time-value-of-money math (IRR, NPV, future value), descriptive statistics (mean, standard deviation, alpha/beta/Sharpe, correlation), liquidity/leverage ratios, and valuation multiples like P/E and price-to-book.
Types of Risk
Covers systematic vs. unsystematic risk categories, opportunity cost, and capital structure/liquidation priority across debt, preferred, and common equity.
Investment Vehicle Characteristics25%
Cash and Cash Equivalents
Insured deposit products (demand deposits, CDs) and money-market instruments such as commercial paper and Treasury bills.
Types of Fixed Income Securities
Government, agency, corporate, municipal (GO, revenue, insured), and foreign-issued debt, including their tax treatment.
Fixed Income Characteristics and Valuation
Bond features (ratings, call provisions, duration, pricing at par/premium/discount) and valuation math (yield to call/maturity, coupon, discounted cash flow, credit spread).
Types and Characteristics of Equity Securities
Common stock (domestic, foreign, ADRs), preferred variants, shareholder rights (voting, preemptive, liquidation), restricted stock, dividends, and employee stock options (ISO vs. NQSO).
Equity Valuation Methods
Technical analysis, fundamental analysis, dividend discount, and discounted cash flow approaches to valuing equities.
Equity Public Offerings
IPOs, secondary offerings, and SPACs/blind pools/blank-check companies.
Types and Characteristics of Pooled Investments
Mutual funds (open/closed-end), private funds (hedge, PE, VC), UITs, ETFs, and REITs, along with share classes, liquidity, fees, NAV/premium-discount pricing, and comparison factors like benchmarks and manager tenure.
Derivative Securities
Basic definitions and characteristics of options, warrants, and futures, including their costs, benefits, and risks.
Alternative Investments and Other Assets
Limited partnerships, exchange-traded notes, leveraged/inverse funds, structured products, commodities/precious metals, and digital assets (definitions, characteristics, and risks).
Insurance-Based Products
Annuity types (variable, fixed, indexed) and life insurance types (whole, term, universal, variable).
Client Investment Recommendations and Strategies30%
Type of Client
Individuals and business entities (partnerships, LLCs, C/S-corps), trusts and estates, and foundations/charities as distinct client categories.
Client Profile
Gathering and using client data. Goals, cash flow/balance sheet, existing holdings, tax situation, risk tolerance, nonfinancial factors (ESG, life stage, behavioral finance), and time horizon. To inform suitability.
Capital Market Theory
Core portfolio theories including CAPM, Modern Portfolio Theory, and the Efficient Market Hypothesis.
Portfolio Management Strategies, Styles and Techniques
Strategic vs. tactical allocation, style categories (active/passive, growth/value/income), and techniques like diversification, sector rotation, dollar-cost averaging, leveraging, and volatility management.
Tax Considerations
Individual and entity-level income tax fundamentals (capital gains, qualified dividends, AMT, RMDs) plus estate and gift tax basics such as the unified credit and portability.
Retirement Plans
IRAs (traditional/Roth), solo 401(k)s, and qualified/nonqualified employer plans (401(k), 403(b), 457, SIMPLE, SEP).
ERISA Issues
Fiduciary duties under ERISA, qualified default investment alternatives, investment policy statements, and prohibited transactions.
Special Types of Accounts
Education-focused accounts (529s, Coverdell), UTMA/UGMA custodial accounts, and HSAs.
Ownership and Estate Planning Techniques
Forms of asset titling (JTWROS, tenancy in common, TBE), TOD/POD designations, beneficiary rules, trusts/wills basics, QDROs, and donor-advised funds.
Trading Securities
Order types and mechanics (market/limit/stop, short sales, margin), the roles of broker-dealers/market makers/exchanges, and trading costs (commissions, markups, spreads, best execution).
Portfolio Performance Measures
Return calculation methods (risk-adjusted, time- vs. dollar-weighted, IRR, after-tax) and use of relevant benchmarks.
Laws, Regulations, and Guidelines Including Prohibition on Unethical Business Practices30%
Regulation of Investment Advisers
Definitions and registration/notice-filing rules for state-registered and federal-covered advisers, including books-and-records and IAR supervision obligations.
Regulation of Investment Adviser Representatives
IAR definition, registration and post-registration duties, and continuing education/reportable-event requirements.
Regulation of Broker-Dealers and Their Agents
Definitions and regulatory treatment of broker-dealers and their registered agents.
Regulation of Securities and Issuers
Securities registration, exemptions, issuer definitions and agent/finder registration, plus state antifraud and enforcement authority.
Remedies and Administrative Provisions
Powers of the state securities Administrator, including administrative actions and other penalties/liabilities.
Communication with Clients and Prospects
Required disclosures, prohibitions on misrepresenting registration status or guaranteeing performance, client contract requirements, and rules on advertising/correspondence including social media and digital communications.
Ethical Practices and Fiduciary Obligations
Fee/compensation disclosure, custody and discretion rules, AML, conflicts of interest and prohibited conduct (insider trading, selling away, market manipulation, exploitation of vulnerable adults), plus cybersecurity/privacy and business continuity planning.
Practice Series 65 by topic
About the Series 65 exam
- Prerequisites
- None. No sponsoring firm, no prior exams (e.g., SIE, Series 7), and no degree or experience requirement. Candidates can register independently.
- Format
- 130 scored multiple-choice questions plus 10 unscored (pretest) questions, 180 minutes, closed-book
- Level
- Investment adviser representative (IAR) state registration qualification
- Who it's for
- Individuals seeking registration as investment adviser representatives (IARs) under state law, including independent RIAs and dually-registered advisor/broker professionals. Commonly taken by financial planners and advisors who are not otherwise exempt via other designations (e.g., CFP, CFA in some states).
Series 65 exam FAQ
How many questions are on the Series 65 exam?
140 total (130 scored + 10 unscored/pretest)
What is a passing score on the Series 65?
92 of 130 scored questions correct (approximately 71%)
What is the format of the Series 65 exam?
130 scored multiple-choice questions plus 10 unscored (pretest) questions, 180 minutes, closed-book
Are there prerequisites for the Series 65?
None. No sponsoring firm, no prior exams (e.g., SIE, Series 7), and no degree or experience requirement. Candidates can register independently.
Who should take the Series 65?
Individuals seeking registration as investment adviser representatives (IARs) under state law, including independent RIAs and dually-registered advisor/broker professionals. Commonly taken by financial planners and advisors who are not otherwise exempt via other designations (e.g., CFP, CFA in some states).
More on the Series 65
- What it costs to get licensed as a financial advisor
- Waiting periods to retake a failed FINRA or NASAA exam
- Exam sections by weight on the SIE, Series 7 and Series 65
- Series 65 vs Series 66
- Series 63 vs Series 65
- Series 66 vs Series 63 + Series 65
- Investment adviser representative licenses
- Plan your path to becoming a financial advisor on Advisor Roadmap, our sister site
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