Series 63 practice questionmediumAgent Registration — Scenario
A broker-dealer has its registration revoked in State Y. What happens to the registration of the agents associated with that broker-dealer in State Y?
- AThe agents' registrations are automatically suspended✓ Correct answer
- BThe agents' registrations remain valid for 90 days
- CThe agents may continue to transact business if they file individual applications
- DThe agents' registrations are unaffected by the broker-dealer's revocation
Explanation
Why A — The agents' registrations are automatically suspended
Under USA Section 202, an agent's registration is dependent on the broker-dealer's registration. If the broker-dealer's registration is revoked, suspended, or otherwise terminated, the agent's registration is automatically suspended. Agents cannot operate independently of a registered broker-dealer.
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