Series 63 practice questionmediumCanadian BD exemption
A Canadian BD is exempt from state registration if which of the following is true?
- AIt deals only with Canadian clients vacationing in the state who had Canadian accounts prior to entry.✓ Correct answer
- BIt solicits new clients residing in the state.
- CIt opens an office in the state for non-residents.
- DIt transacts business with any U.S. citizen.
Explanation
Why A — It deals only with Canadian clients vacationing in the state who had Canadian accounts prior to entry.
The exemption applies if the Canadian BD deals only with pre-existing Canadian clients temporarily in the state (USA 401(b)(3)). Soliciting residents (B) or opening an office (C) voids the exemption.
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
- State T has adopted the Uniform Securities Act. A broker-dealer located only in State Q has a single institutional…
- ABC Securities, a broker-dealer registered in State X, opens a new branch office in State Y where it is not yet…
- An agent of a broker-dealer is effecting transactions exclusively with the officers of the issuer in non-issuer…
- Under the USA, which of the following individuals is NOT required to register as an agent?
- Which of the following is NOT a condition for the Canadian BD and agent exemption under the USA?
- Which of the following scenarios would allow a broker-dealer to avoid registration in a state?
- Which of the following agents must be registered in a state under the USA?
- A registered agent in State M is asked to solicit business from a pension fund with offices in State M. The agent is…