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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumFINRA Membership vs. State Registration

A registered agent at a FINRA-member broker-dealer in State Z moves to a non-FINRA broker-dealer in the same state. Which of the following is MOST accurate regarding the impact on the agent’s ability to sell securities?

  1. AThe agent may continue selling as long as state registration remains active.
  2. BThe agent must re-register with the state before selling for the new broker-dealer.✓ Correct answer
  3. CThe agent may not sell until the new broker-dealer becomes a FINRA member.
  4. DThe agent may sell as long as the new broker-dealer is properly registered in State Z.
Explanation

Why B — The agent must re-register with the state before selling for the new broker-dealer.

An agent's registration is tied to the employing broker-dealer. Before selling through the new broker-dealer, the agent must file the required new association and have registration become effective in State Z. The new firm's registration alone is not enough.

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