Series 63 practice questionmediumBroker-Dealer Registration — Successor Firms
A training manager asks you to analyze the following USA issue. Focus on what changes once the scenario is viewed through state law. When a registered broker-dealer merges with another firm and creates a successor entity, the successor firm:
- AMay file an amendment to the predecessor's registration and continue business without interruption✓ Correct answer
- BMust file a completely new registration application from scratch
- CMust wait 30 days before conducting any business
- DIs automatically registered for one year without any filing requirements
Explanation
Why A — May file an amendment to the predecessor's registration and continue business without interruption
Under USA Section 202(b), a successor firm may file an amendment to the existing registration of the predecessor broker-dealer rather than filing an entirely new application. This allows business continuity during the transition and avoids disruptions to customer accounts. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.
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