Securities Licensing Requirements by State (Overview)
1/29/2026
The financial services industry is unique in its regulatory structure. While most professions are regulated either at the federal level (like aviation) or the state level (like medicine or law), the securities industry is regulated by both simultaneously.
If you are an aspiring financial advisor, stockbroker, or investment banker, you have likely focused your energy on the big federal exams: theSecurities Industry Essentials (SIE) Examination and the Series 7. These are critical, but passing them only gets you halfway there. To actually pick up the phone and solicit business, you almost certainly need to be registered with the individual states where your clients live.
These state regulations are known collectively as "Blue Sky Laws." The term dates back to the early 20th century, when a judge remarked that speculative schemes had no more substance than "so many feet of blue sky." To protect their citizens from fraud, states enacted laws requiring salespeople to register and prove their competence.
Navigating these 50 different sets of rules can be daunting. Does New York require the same exams as California? What if your client moves from Texas to Florida? Do you need a new license?
In this comprehensive overview, we will demystify state securities licensing. We will explain the role of the North American Securities Administrators Association (NASAA), breakdown the differences between the Series 63, 65, and 66, and provide a general roadmap for state registration compliance across the country.
The Dual-Layer Regulatory Framework
To understand state requirements, you must first understand how they fit into the bigger picture.
Layer 1: Federal (SEC & FINRA)
At the top level, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) oversee the industry nationally. They care about market integrity, insider trading, and net capital rules for broker-dealers. You satisfy their requirements by passing exams like theSeries 7: General Securities Representative or theSeries 6: Investment Company Products.
Layer 2: State (NASAA)
At the local level, each state has a securities administrator (often part of the Secretary of State's office or a dedicated Department of Financial Institutions). They care about protecting their specific residents from bad actors. You satisfy their requirements by passing NASAA exams and filing for registration in that state.
The Golden Rule: You generally cannot conduct business with a resident of a state unless you are registered in that state. This applies even if you are physically located elsewhere. If you are in Chicago but your client is in Milwaukee, you must be registered in Wisconsin.
The "Blue Sky" Exams: Series 63, 65, and 66
While every state has its own laws, thankfully, you do not have to take 50 different exams. NASAA has standardized the testing process into three core exams that are accepted by virtually all jurisdictions.
1. Series 63: Uniform Securities Agent State Law Examination
This is the most common state exam. It is designed for "Agents" (also known as Registered Representatives). If you work for a broker-dealer and earn commissions on transactions, this is likely the exam you need.
- Focus: It tests your knowledge of the Uniform Securities Act (USA), which is the model law that most states base their regulations on. It covers registration of persons and securities, ethical business practices, and administrative powers.
- Format: 60 scored questions, 75 minutes.
- Prerequisite: None officially, but it is effectively useless without a FINRA representative exam (like Series 6 or 7).
Resource: ExploreSeries 63 Licensing Courses.
2. Series 65: Uniform Investment Adviser Law Examination
This exam is for "Investment Adviser Representatives" (IARs). If you work for a Registered Investment Adviser (RIA) firm and provide advice for a fee (rather than a commission), this is your exam.
- Focus: It covers state laws (like the Series 63) but also includes significant content on economics, investment vehicles, and analysis. It is essentially a competency exam plus a law exam.
- Format: 130 scored questions, 180 minutes.
- Prerequisite: None. In fact, many financial planners take only the Series 65 and operate as independent fee-only advisors without ever dealing with FINRA.
Resource: ExploreSeries 65 Licensing Courses.
3. Series 66: Uniform Combined State Law Examination
This exam was created to streamline the process for General Securities Representatives (Series 7 holders) who also want to act as Investment Advisers.
- The Math: Series 63 + Series 65 = Series 66 (conceptually).
- Focus: It combines the legal requirements of the Series 63 with the advisory rules of the Series 65. However, it removes the "product knowledge" and "economics" sections found in the Series 65 because it assumes you already know that from passing the Series 7.
- Prerequisite: You must pass theSeries 7 to register with a Series 66. They are co-requisites.
Resource: ExploreSeries 66 Licensing Courses.
General State Registration Requirements
While the Uniform Securities Act standardizes much of the process, each state is sovereign. Below is an overview of how registration generally works across the U.S., along with the nuances you need to watch out for.
The "De Minimis" Exemption
One of the most important concepts in state licensing is the de minimis exemption. This rule typically allows an Investment Adviser (IA) who has no place of business in a state to have a small number of clients (usually 5 or fewer) in that state without registering.
- Warning: This exemption usually applies to Investment Advisers, not Broker-Dealer Agents. Most states require Broker-Dealer Agents to register if they have even a single retail client in the state. Always check the specific state's definition.
Snowbirds and Vacationers
What if your client goes to Florida for the winter? Under the Uniform Securities Act, if an existing client is temporarily in another state (e.g., vacation, graduate school), you typically do not need to register in that state to trade for them. However, if they change their primary residence, you usually have 30 days to file for registration in their new home state.
State-by-State Overview
Below is a high-level overview of registration considerations. Please note that state laws change, and you should always verify the latest requirements with your firm's compliance department or the state securities administrator.
For specific training courses in your region, you can browseSecurities Licensing options by state.
Alabama to Connecticut
- Alabama: Requires Series 63 or 66 for agents. Follows standard NASAA guidelines.
- Alaska: Strict adherence to Blue Sky laws. Investment advisers with no place of business in Alaska generally have the 5-client de minimis exemption.
- Arizona: A popular state for retirees (snowbirds). Agents often need to register here due to clients moving south. Arizona generally requires the Series 63.
- Arkansas: Requires Series 63.
- California: California is unique. While it accepts the Series 63, it also has specific regulations regarding "Investment Adviser Representatives." California does not always follow the federal de minimis rules perfectly, so extra caution is needed.
- Colorado: Accepts Series 63/65/66. Colorado has a robust Department of Regulatory Agencies (DORA) that oversees securities.
- Connecticut: Requires registration for anyone transacting business.
Delaware to Hawaii
- Delaware: The corporate capital of the U.S., but for individual agents, standard Series 63/66 rules apply.
- District of Columbia (DC): Treats registration similarly to a state. Requires Series 63 or 66.
- Florida: Like Arizona, Florida has a massive population of retirees. Many advisors in New York or the Midwest must register in Florida simply because their clients retire there. Florida does NOT require the Series 63 for standard agents associated with FINRA firms, but it does require fingerprints and strict background checks.
- Georgia: Requires Series 63 for agents.
- Hawaii: Standard NASAA adoption.
Idaho to Louisiana
- Idaho: Requires passing the Series 63 or Series 66.
- Illinois: Illinois is a strict regulatory state. All salespersons must pass the Series 63 or 66.
- Indiana: Follows the Uniform Securities Act.
- Iowa: Iowa insurance and securities regulators are often active. Series 63/66 is standard.
- Kansas: Requires Series 63 or 66.
- Kentucky: Standard requirements.
- Louisiana: Requires Series 63 or 66.
Maine to Minnesota
- Maine: Standard requirements.
- Maryland: Requires Series 63 or 66.
- Massachusetts: Known for being a very aggressive enforcer of securities laws. The Massachusetts Secretary of the Commonwealth often sets high standards for fiduciary duty. Strict Series 63/65/66 compliance is mandatory.
- Michigan: Requires Series 63 or 66.
- Minnesota: Standard NASAA exams.
Mississippi to New Jersey
- Mississippi: Requires Series 63.
- Missouri: Requires Series 63 or 66.
- Montana: Standard requirements.
- Nebraska: Requires Series 63 or 66.
- Nevada: Nevada has strict registration rules. While it accepts the Series 63, it is known for having rigorous background checks for telemarketing and securities sales to prevent fraud.
- New Hampshire: Requires Series 63 or 66.
- New Jersey: Requires Series 63 or 66. Being adjacent to NYC, many advisors must be dual-registered in NY and NJ.
New Mexico to South Carolina
- New Mexico: Standard requirements.
- New York: The financial capital of the world has surprisingly specific rules. New York's "Martin Act" gives the Attorney General broad powers. For registration, NY generally requires the Series 63 or 66, but the application process via the CRD (Central Registration Depository) is critical.
- North Carolina: Requires Series 63 or 66.
- North Dakota: Standard requirements.
- Ohio: While it follows NASAA exams, Ohio has specific provisions regarding the sale of certain securities. Series 63 is generally required.
- Oklahoma: Requires Series 63 or 66.
- Oregon: Oregon is another state with strong investor protection laws. Registration is mandatory.
- Pennsylvania: Requires Series 63 or 66.
- Rhode Island: Standard requirements.
- South Carolina: Requires Series 63 or 66.
South Dakota to Wyoming
- South Dakota: Standard requirements.
- Tennessee: Requires Series 63 or 66.
- Texas: Texas is a unique jurisdiction. To do business in Texas as an Investment Adviser Representative, you must be registered. Texas generally requires the Series 65 or 66. However, for broker-dealer agents, the Series 63 is standard.
- Utah: Standard NASAA exams.
- Vermont: Requires Series 63 or 66.
- Virginia: Requires Series 63 or 66.
- Washington: Washington State has its own Securities Act. Series 63 or 66 is required.
- West Virginia: Standard requirements.
- Wisconsin: As noted in the example, Wisconsin strictly enforces registration for anyone with clients in the state.
- Wyoming: Standard requirements.
How to Get Registered in Multiple States
If you are just starting your career, you might think, "I live in Ohio, so I only need to register in Ohio." That is rarely the case for long. As you grow your book of business, you will get referrals from other states, or your existing clients will move.
Here is the process for adding state registrations:
- Check the Requirements: Verify if the new state requires the Series 63 or 66. If you have already passed it, you don't need to take it again.
- File Form U4: Your compliance department will update your Form U4 to check the box for the new state (e.g., adding Florida).
- Pay the Fee: Each state charges an annual registration fee. Your firm typically handles this.
- Wait for Approval: In most cases, if you have a clean disciplinary record, the registration is approved automatically within days. If you have disclosures (bankruptcies, criminal history), the state may pause the application for review.
Waivers and Exemptions
Are there ways out of taking the exams? Sometimes.
- Professional Designations: Many states will waive the Series 65 examination requirement if you hold certain professional designations, such as:
- Certified Financial Planner (CFP)
- Chartered Financial Analyst (CFA)
- Personal Financial Specialist (PFS)
- Chartered Financial Consultant (ChFC)
- Chartered Investment Counselor (CIC)
- Grandfathering: If you have been continuously registered and in good standing without a lapse of more than two years, you typically do not need to retake exams when moving firms.
The Intersection with Insurance Licensing
It is crucial to remember that securities registration is completely separate from insurance licensing. Being a registered stockbroker in Texas does not allow you to sell life insurance or fixed annuities in Texas.
To be a comprehensive financial advisor, you need to replicate this registration process on the insurance side. This means:
- Passing the stateLife & Health Insurance License exam.
- Applying for a resident license in your home state.
- Applying for "non-resident" licenses in every other state where you have clients.
Fortunately, insurance reciprocity is very efficient. Once you have your home state license, getting non-resident licenses is usually just a matter of paying a fee, without taking more exams.
Conclusion: Compliance is Key to Career Longevity
State securities licensing requirements may seem like a bureaucratic headache, but they are the guardrails of the industry. They exist to ensure that anyone handling the life savings of a retiree in Arizona or a business owner in Maine is qualified and ethical.
For the aspiring professional, the strategy is simple:
- Pass the SIE and your Top-Off Exam (Series 6 or 7).
- Pass the Series 63 or 66 immediately after. This covers your bases for almost every state.
- Register in your home state first.
- Monitor your client base and proactively register in new states before you solicit business there.
Don't let a compliance oversight derail your career. Ensure you have the right training for the right jurisdiction. Whether you need to pass the Series 63 for the first time or need continuing education to maintain your license, high-qualitySecurities Licensing courses are your best investment in a seamless, compliant practice.
For specific guidance on the exams required for your path, explore the options forSeries 63,Series 65, andSeries 66 preparation today.
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