Series 63 practice questionmediumBroker-Dealer Registration — Successor Firms
A training manager asks you to analyze the following USA issue. Read it as a Uniform Securities Act issue rather than a federal-law issue. 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. The extra setup is just noise; the controlling state-law rule stays the same.
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