Series 65 case studies
Series 65 · Put your knowledge to work in context.
The Series 65 is the licensing exam most often associated with becoming an investment adviser representative at firms registered with a state securities regulator. In most states, an individual who provides investment advice for compensation - and who is not covered by federal registration - must satisfy a qualification requirement of this kind before being licensed to do that work. The Series 65 case studies are 5 cases and about 3,003 words.
1The HVAC Contractor's Inverted Curve
Maria, 55, owns a 38-employee HVAC contractor with 4.2 million annual revenue. She has a 600,000 variable-rate credit line priced at prime + 1.50%; prime is 8.50%.
626 words, about 3 min2Premium Muni vs. Corporate Bond
Lena, 68, is in the 35% federal bracket and 6% state bracket. She is considering a 10-year in-state municipal bond with a 3.10% coupon, priced at 104.50, callable in three years at par; its yield to maturity is 2.55%, and its yield to worst is 2.10%.
604 words, about 3 min3Concentrated Employer Stock at 58
Tom, 58, and Jia, 60, have 1.8 million: 900,000 of Tom's employer stock with a 150,000 basis, 500,000 in a 401(k), 250,000 cash, and 150,000 in a Roth IRA. Tom plans to retire at 62; their spending is 120,000 a year, and Social Security at 67 will provide 55,000.
596 words, about 3 min4The Marketing Rule Makeover
An SEC-registered investment adviser with $45 million AUM and 120 retail clients wants to redesign its website. The draft includes: (1) a client quote, 'My adviser beat the S&P 500 by 4% last year and got me guaranteed retirement income'; (2) a bar chart of a hypothetical portfolio's gross returns since 2019; (3) a five-star review from a rating site; and (4) a statement that the adviser 'will not lose your money.' The adviser also plans to hold clients' stock certificates in its office safe and to send the brochure only after clients sign the advisory agreement.
603 words, about 3 min5The Borrowed $50,000 and the Principal Trade
You are the compliance consultant for a state-registered investment adviser with 80 clients. The owner, Priya, asks you to review three actions: (1) she wants to borrow 50,000 from a long-time client to cover a short-term cash-flow gap, promising 6% interest and repayment in six months; (2) she wants to sell the client a bond from her personal account at a 1.5% markup without written disclosure or consent; and (3) she wants to use 12,000 of client brokerage commissions to pay for her trip to a due-diligence conference, arguing that the conference will benefit clients.
574 words, about 3 min