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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumDistinguishing Agent Obligations vs. Broker-Dealer Obligations

All of the following are ongoing obligations of a registered broker-dealer EXCEPT:

  1. AMaintaining minimum net capital as required by the Administrator.
  2. BFiling annual financial reports with state Administrators if required.
  3. CEnsuring agents complete firm and regulatory continuing education requirements.
  4. DGuaranteeing agents do not commit any securities violations.✓ Correct answer
Explanation

Why DGuaranteeing agents do not commit any securities violations.

While broker-dealers must supervise agents (C), they cannot guarantee agents will never violate securities laws (D, which is impossible). Net capital (A) and required filings (B) are ongoing statutory obligations (USA 402(d), 407).

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