Introduction

Welcome to Regulation of Investment Advisers, the cornerstone of the Series 66 exam's largest section. Understanding who qualifies as an investment adviser, where they must register, and what obligations they carry matters for anyone seeking dual registration.

Exam Weight: approximately 7 questions

What You'll Learn

In this unit, you'll cover:

• Definitions: The three-part test for investment adviser status, exclusions from the definition, and the federal covered adviser distinction
• Notice Filing Requirements: How states maintain oversight of federal covered advisers without imposing full registration
• Registration and Post-Registration Requirements: Form ADV parts and delivery, recordkeeping, financial reporting, and the brochure rule
• Exempt Reporting Advisers and Private Fund Advisors: SEC exemptions for private fund and venture capital advisers
• Investment Adviser Representative Supervision: An adviser's obligation to supervise investment adviser representatives (IARs) and maintain written compliance procedures

Why This Matters

Investment adviser regulation is where federal and state law intersect most directly. The exam tests your ability to distinguish who must register, where they register, and what rules apply after registration. Getting the assets under management (AUM) thresholds, exclusions, and Form ADV delivery rules right can easily account for 5-7 questions on exam day.

Let's start with the foundational definitions: who is (and who is not) an investment adviser.