Series 63 practice questionmediumAgent exemption - institutional
A registered agent in State M is asked to solicit business from a pension fund with offices in State M. The agent is not registered in State M, while the broker-dealer is exempt from registration there. Which of the following is true under the USA?
- AThe agent must be registered in State M.
- BThe agent is exempt from registration when working only with institutional clients.✓ Correct answer
- CBoth the agent and BD are exempt.
- DNeither the agent nor the BD needs exemption, since the pension fund is a client.
Explanation
Why B — The agent is exempt from registration when working only with institutional clients.
Agents must register in the state where they solicit business, even if the broker-dealer is exempt due to dealing only with institutional clients.
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