Series 63 practice questionmediumExemptions — Broker-Dealers with No Office in State
A broker-dealer with no office in a state is exempt from registration in that state if its only transactions are with:
- AAny retail customer who contacts the firm
- BExisting clients who have moved to that state within the past year
- COther broker-dealers, institutional investors, or issuers✓ Correct answer
- DResidents who respond to general advertising
Explanation
Why C — Other broker-dealers, institutional investors, or issuers
Under USA Section 401(c), a broker-dealer that has no office in the state is exempt from registration if its only transactions in the state are with other broker-dealers, banks, insurance companies, investment companies, pension trusts, or other institutional investors. Transactions with retail customers or advertising respondents would require registration.
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 federal covered investment adviser is one that:
- An agent's registration in a state expires on:
- If a broker-dealer is exempt from state registration, the agents of that broker-dealer:
- Lisa is registered as an agent in State A through her broker-dealer. She attends a conference in State B and, during a…
- Which of the following is considered an institutional investor for purposes of broker-dealer registration exemptions…
- Under the Uniform Securities Act, which of the following individuals is NOT considered an agent?
- Pinnacle Securities is a broker-dealer with its only office in State A. It has no office in State B. Pinnacle receives…
- David is a registered agent with Broker-Dealer Alpha. Without notifying Alpha, David opens a personal account at…