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← Series 63: Remedies & Administrative Provisions
Series 63 practice questioneasyAdministrative Procedures — Service of Process

A training manager asks you to analyze the following USA issue. The exam wants the best state-securities answer, not a practical business answer. Under the USA, when a non-resident broker-dealer registers in a state, it is deemed to have:

  1. AEstablished a permanent physical office in the state
  2. BWaived all rights to judicial review in that state
  3. CAgreed to be subject only to federal securities law
  4. DAppointed the Administrator as its agent for service of process✓ Correct answer
Explanation

Why D — Appointed the Administrator as its agent for service of process

Under USA Section 414, every applicant for registration who is a non-resident and every non-resident who has registered irrevocably appoints the Administrator as agent for service of process. This ensures that the state can serve legal documents even on out-of-state registrants. The extra setup is just noise; the controlling state-law rule stays the same.

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