Series 63 practice questioneasyBD Registration Requirements
A broker-dealer with no office in State X has one retail client residing in State X. Under the USA, which statement about registration is correct?
- AThe broker-dealer must register in State X.✓ Correct answer
- BThe broker-dealer is exempt from registration in State X if it has no office.
- CThe broker-dealer must register only if it has more than five clients in State X.
- DThe broker-dealer registers only with the SEC, not the state.
Explanation
Why A — The broker-dealer must register in State X.
A broker-dealer with even one retail client in a state must register there unless another exemption applies (USA Section 401(c)). The office exemption (B) applies only for institutional clients. Option C confuses with investment adviser rules; D ignores dual registration.
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