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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumEffect of Firm Expulsion or Suspension

A junior banker at William Blair is registered as an agent in State R. If William Blair’s FINRA membership is suspended, which statement BEST describes the agent’s ability to continue transacting business in State R?

  1. AThe agent may continue transacting until the end of the suspension period.
  2. BThe agent’s registration is automatically suspended in State R.✓ Correct answer
  3. CThe agent may continue transacting if the state Administrator provides an exemption.
  4. DThe agent may only transact unsolicited orders.
Explanation

Why B — The agent’s registration is automatically suspended in State R.

Under USA 412(e), suspension or expulsion of the broker-dealer’s FINRA membership automatically suspends its state registration and, consequently, that of its agents. There is no unsolicited order exemption (D) and Administrators cannot give waivers (C) in this case.

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