Series 63 practice questioneasyAgent registration exemption
An agent does not need to register in a state when effecting transactions with which of the following clients, assuming the broker-dealer is exempt?
- AAn individual investor residing in the state
- BA trust with a single beneficiary
- CA bank with offices in the state✓ Correct answer
- DA mutual fund shareholder
Explanation
Why C — A bank with offices in the state
Agents are exempt from registration when dealing exclusively with institutional clients like banks (USA Section 402(b)(1)). Individuals (A), trusts (B), and mutual fund shareholders (D) are not exempt under this provision.
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