NASAA Series 66 Study Plan & Exam-Day Pass Strategy
The Uniform Combined State Law Examination (Series 66) evaluates 100 scored questions across 4 content areas, with 45% dedicated to complex state and federal securities regulations. Follow this structured roadmap to allocate your study hours, pace the 150-minute Prometric clock, and master the first-5-minute dump sheet.
Strategic Blueprint Allocation
Economic Factors
Financial reporting ratios (working capital, current, quick), discounted cash flow (DCF), internal rate of return (IRR), and macroeconomic yield curves.
Investment Vehicles
Fixed income valuation, equity valuation models (DDM, DCF), mutual funds, closed-end funds, UITs, variable life insurance, and alternative investments.
Client Strategies
Modern Portfolio Theory (MPT), Sharpe ratio, Jensen's alpha, client financial profiling, estate planning (trusts, wills, TOD), and tax strategies (capital gains, IRAs, 401ks).
Laws & Regulations
Uniform Securities Act, State vs Federal covered IAs, IAR registration, Form ADV Part 2A/2B, custody, discretion, ethical business practices, and civil/criminal liabilities.
The 4-Week Standard Study Plan (15–20 Hours / Week)
Week 1: State vs. Federal Registration & The Uniform Securities Act
18 Hours- Read Series 66 Study Guide Area 4 (State & Federal Securities Regulations).
- Master the definition of Investment Adviser (IA), Broker-Dealer (BD), Agent, and IAR.
- Learn NSMIA $100M / $110M AUM thresholds and notice filing rules using the Series 66 Cheat Sheet.
- Understand the L.A.T.E. exclusion (Lawyers, Accountants, Teachers, Engineers) and the 5-client de minimis rule.
- Drill 30 Area 4 questions in the Series 66 Practice Simulator.
Week 2: Fiduciary Conduct, Form ADV, Custody & Discretion
18 Hours- Master Form ADV Part 2A (Brochure) and 2B (Supplement) delivery rules (48-hour prior delivery vs 5-day penalty-free termination).
- Study Custody rules ($35k net worth / bond, 3-day return of inadvertent checks, surprise audit requirements).
- Memorize the 10-day oral discretion grace period for IAs vs ZERO oral discretion for BDs.
- Learn Performance-based fee restrictions (Rule 205-3 Qualified Client: $1.1M AUM or $2.2M net worth).
- Review prohibited practices: churning, insider trading, agency cross transactions, and borrowing/lending rules.
Week 3: Portfolio Theory, Investment Vehicles & Estate Planning
16 Hours- Review Area 2: DCF bond pricing, duration, convexity, dividend discount models, and closed-end vs open-end funds.
- Review Area 3: Modern Portfolio Theory (MPT), efficient frontier, Sharpe ratio, and alpha/beta mechanics.
- Master Client Tax & Estate structures: Revocable vs Irrevocable trusts, TOD accounts, probate avoidance, gift tax exclusions, and traditional vs Roth IRA RMD rules.
- Complete 40 practice questions spanning Areas 2 and 3.
Week 4: Full 100-Question Simulations & Weak-Spot Remediation
20 Hours- Take the full 100-Question Series 66 Mock Exam under timed 150-minute testing conditions.
- Conduct a detailed distractor autopsy on every missed question: distinguish SEC federal rules from NASAA state rules.
- Practice writing out the First-5-Minute Dump Sheet from memory.
- Take a final 25-Question Diagnostic Sprint the day before the exam.
The Prometric First-5-Minute Dump Sheet
The moment you sit at your Prometric testing terminal, use your provided scratch paper/whiteboard to write down these essential statutory thresholds and memory anchors before clicking 'Begin Exam':
• $100M – $110M: Choice (State or SEC)
• ≥ $110M: Mandatory SEC Registration (within 90 days)
• Drops below $90M: Must transition to State (within 180 days)
• BD / BD Agent: ZERO de minimis (1 client triggers registration)
• Fed IA IAR: Registers ONLY where physical office is located
• Form U5: State IA = both notify; Fed IA = only IAR notifies
• BD Oral Discretion: 0 days (must be in writing prior)
• Inadvertent funds: Return within 3 BUSINESS DAYS
• Net worth deficit: Notify state by close of next business day
• Brochure Delivery: Within 120 days of fiscal year-end
• 48-Hour Brochure Rule: Or 5-day penalty-free cancellation
• Performance Fee: Qualified Client ($1.1M AUM or $2.2M net worth)
Put Your Strategy Into Action
Test your knowledge with 100 authentic Prometric-style questions in our interactive simulator.