Series 63 practice questioneasyBonding Requirements
A state Administrator may require a broker-dealer to post a surety bond as a condition of registration if the firm:
- AHas or may have custody of client funds or securities.✓ Correct answer
- BIs only executing proprietary trades.
- COnly sells federal covered securities.
- DDoes not maintain any office in the state.
Explanation
Why A — Has or may have custody of client funds or securities.
The Administrator may require a surety bond if the broker-dealer has or may have custody of client assets (USA Section 202(c)). The other choices do not automatically trigger a bonding requirement.
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