Series 63 practice questioneasySnowbird Exemption
A registered broker-dealer in Texas has a long-standing client who is a Texas resident but spends six months each year in Arizona. The client requests a trade while vacationing in Arizona. Which statement best describes the broker-dealer's registration obligation in Arizona under the Uniform Securities Act (USA)?
- ANo registration in Arizona is required due to the snowbird exemption.✓ Correct answer
- BThe broker-dealer must register in Arizona before executing the trade.
- CThe broker-dealer must register the agent but not the firm in Arizona.
- DRegistration is required only if the client opens a new account while in Arizona.
Explanation
Why A — No registration in Arizona is required due to the snowbird exemption.
The snowbird exemption (USA §401(b)(2)(A)) applies when the client is a resident of the broker-dealer’s home state and is only temporarily in another state. Wrong answers ignore that the exemption is based on the client’s residency, not their physical location or activity.
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
- A broker-dealer sells an unregistered security to eight non-institutional investors in a state within a 12-month…
- Under the Uniform Securities Act, when does a complete broker-dealer registration application generally become…
- Which of the following is NOT a requirement for a Canadian broker-dealer to rely on the Canadian BD exemption under the…
- A broker-dealer’s registration is revoked in State G. The firm reapplies for registration six months later, including…
- Sarah works as a receptionist at a broker-dealer firm. She answers phones, greets visitors, and occasionally tells…
- If an Administrator summarily suspends a broker-dealer’s registration, within what timeframe must a hearing be provided…
- All of the following are TRUE regarding the snowbird exemption and the Canadian broker-dealer exemption under the USA…
- An applicant for registration as an agent in State F discloses a non-securities-related felony conviction from 11 years…