Should you take the SIE training and exam before you start studying for the Series 65 (or 66)?

Answer 1

The answer is long-winded but, hopefully, it makes your choice more apparent:

It’s not required to take the Securities Industry Essentials (SIE) exam before studying for the Series 65 or Series 66, but doing so can be beneficial in certain situations. Here’s a breakdown of how they relate and what to consider:

SIE Exam Overview

1. What it is: The SIE is an entry-level exam for prospective securities industry professionals. It covers fundamental concepts about the industry, including types of securities, market participants, and regulatory frameworks.
2. Who it's for: It’s ideal for people who want to work in securities, such as broker-dealer firms, and it’s usually the first step before taking more advanced exams (like Series 6, 7, etc.).
3. Requirement: The SIE is not a prerequisite for Series 65 or 66.

Series 65 and 66 Overview

1. Series 65: This is for individuals who want to become investment adviser representatives (IARs), allowing them to provide financial advice for a fee without selling securities. It focuses on investment advice, laws, ethics, and portfolio management.
2. Series 66: Combines elements of Series 65 and Series 63. It’s designed for people who want to become both investment adviser representatives (IARs) and securities agents. You must have already passed the Series 7 exam to take Series 66.

Should You Take the SIE First?

1. Take SIE first if:
2. You plan to eventually work at a broker-dealer or sell securities, in which case passing the SIE will lay a solid foundation for future licensing exams.
3. You’re new to the securities industry and want a comprehensive introduction. The SIE helps cover fundamental topics that can give you a better understanding when studying for the Series 65 or 66.
4. Skip the SIE if:
5. You only plan to work as a registered investment adviser (RIA) and will not engage in selling securities, since Series 65 already covers the knowledge required for this role.
6. You are focusing solely on the Series 65, as the exam is standalone, and you don’t need any other securities licenses to offer investment advice.

Key Considerations:

1. Overlap: There is some overlap in content between the SIE and Series 65/66, particularly in regulatory, ethical, and basic market concepts. Taking the SIE first may help you understand some of these topics more easily, but it's not necessary if your goal is solely to pass Series 65.
2. Career Goals: If you plan to work more broadly in financial services and may need other licenses (like Series 6, 7, or 63), taking the SIE could be a smart early step. If you just want to be a financial adviser or planner, focusing on Series 65 may be more efficient.

Answer 2

Highly recommended that you do the SIE - no need for a sponsor AND you can take the test as often as you like until you pass! General stock, bond and market knowledge is essential to passing the Series 65 and 66.