Series 63 practice questionmediumBD Registration—State Office and Clients
A broker-dealer has an office in State A but only conducts business with out-of-state clients. Under the USA, must it register in State A?
- AYes, because it has an office in State A✓ Correct answer
- BNo, because it has no clients in State A
- COnly if it solicits clients in State A
- DOnly if required by the SEC
Explanation
Why A — Yes, because it has an office in State A
Having a place of business in the state requires registration regardless of client residency (USA Section 401). The other options incorrectly limit the requirement.
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