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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Broker-Dealers & Agents questions
- A newly formed broker-dealer in State Y applies for registration with both the state and FINRA. Which of the following…
- A broker-dealer charges both a fixed fee and per-transaction commissions within the same client account, but fails to…
- Which of the following is TRUE regarding a state Administrator’s ability to set net capital requirements for…
- An agent suggests using soft dollars to reimburse a client’s legal expenses related to a securities complaint. Which…
- A registered agent at a FINRA-member broker-dealer in State Z moves to a non-FINRA broker-dealer in the same state.…
- A junior banker recommends a commission-based investment product that pays a higher commission than alternatives. Under…
- Under FINRA's current Regulatory Element framework, how often must a covered registered person generally complete the…
- If a broker-dealer in Illinois is found to have used client commissions to pay for non-research-related personal travel…
