Series 63 practice questionhardFederal Covered Securities
A broker-dealer acts solely as an underwriter for federal covered securities. Which post-registration requirements apply under the USA?
- ANet capital, bonding, and record-keeping requirements still apply.✓ Correct answer
- BFirm is exempt from all post-registration requirements.
- COnly record-keeping requirements apply.
- DOnly the SEC requirements apply, never state post-registration rules.
Explanation
Why A — Net capital, bonding, and record-keeping requirements still apply.
Even when dealing only in federal covered securities, broker-dealers must meet net capital, bonding, and record-keeping requirements (USA Section 202(c)). State registration of the securities is preempted, not firm requirements.
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