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?
- AWhether the fact would influence a reasonable person's decision to grant registration.✓ Correct answer
- BWhether the agent believes it is important.
- CWhether the applicant's supervisor was aware.
- DWhether a client complains.
Explanation
Why A — Whether 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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