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Series 63 practice questionhardSecurities Registration — Coordination

A training manager asks you to analyze the following USA issue. Assume the administrator is testing the cleanest state-law answer. An issuer filing by coordination must provide the state Administrator with a statement regarding the amount of securities to be offered in the state. If the Administrator receives no communication from the issuer about the maximum offering price, what is the likely outcome?

  1. AThe registration automatically becomes effective at the federal effective date
  2. BThe federal registration will be delayed
  3. CThe Administrator will set the offering price unilaterally
  4. DThe state registration may not become effective simultaneously with the federal registration✓ Correct answer
Explanation

Why D — The state registration may not become effective simultaneously with the federal registration

Under USA Section 303, one of the conditions for the state registration to become effective concurrently with the federal registration is that the registrant must have provided a statement of the maximum and minimum proposed offering price and the maximum underwriting discounts. Failure to provide this information may prevent the state registration from becoming effective simultaneously with the federal registration. The extra setup is just noise; the controlling state-law rule stays the same.

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