Challenge Your Exam Readiness With Our Free Series 66 License Practice Questions

The Series 66 exam requires detailed knowledge of unethical and fraudulent practices under the Uniform Securities Act (USA) and NASAA rules. A material conflict of interest—such as receiving higher compensation for recommending one product over another—must always be disclosed. Failure to disclose is an unethical act because it prevents clients from making fully informed decisions. Charging commissions on both sides of a trade is permissible if disclosed; sharing commissions is acceptable if both parties are registered with the same firm. Recommending suitable securities aligns with fiduciary duty. This question highlights the exam’s emphasis on professional ethics: transparency, honesty, and avoiding misrepresentation. Advisers and agents must place the client’s interest ahead of their own at all times, and failure to disclose conflicts can result in disciplinary action, license suspension, or revocation.