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Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardDenial—False Representation

An agent is denied registration because the Administrator finds the agent made a false representation on their application. The agent claims the representation was immaterial. What determines materiality under the USA?

  1. AWhether the fact would influence a reasonable person's decision to grant registration.✓ Correct answer
  2. BWhether the agent believes it is important.
  3. CWhether the applicant's supervisor was aware.
  4. DWhether a client complains.
Explanation

Why AWhether the fact would influence a reasonable person's decision to grant registration.

Materiality is based on its importance to a reasonable decision-maker (Section 204). Personal beliefs, supervisor awareness, or client complaints are irrelevant to materiality.

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