Series 63 practice questioneasyBD registration exemption
A broker-dealer with no place of business in State Z deals solely with other broker-dealers located in State Z. Under the USA, which of the following is true?
- AThe broker-dealer must register in State Z.
- BThe broker-dealer is exempt from State Z registration.✓ Correct answer
- CThe broker-dealer must register only its agents in State Z.
- DThe broker-dealer must register with the SEC but not State Z.
Explanation
Why B — The broker-dealer is exempt from State Z registration.
Broker-dealers with no office in a state who deal only with other BDs are exempt from registration (USA 401(b)(2)). Agent registration (C) is not required if the BD is exempt. SEC registration (D) is a separate requirement.
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