Series 63 practice questionmediumAgent exemption - unsolicited
An agent of a BD in State W receives an unsolicited order from a resident retail client. Which of the following is true under the USA?
- AThe agent must be registered in State W.✓ Correct answer
- BThe agent is exempt from registration for this order.
- CThe BD must register but the agent is exempt.
- DBoth agent and BD are exempt for unsolicited trades.
Explanation
Why A — The agent must be registered in State W.
The agent of a broker-dealer must be registered in State W before effecting securities transactions for a resident retail client. The fact that the order is unsolicited may make the transaction exempt from securities registration, but it does not exempt a broker-dealer's agent from agent registration.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Broker-Dealers & Agents questions
- A broker-dealer with no office in State G places an online advertisement accessible to State G residents, but only…
- Under the USA, which is an example of an institutional investor for exemption purposes?
- A Canadian BD has a client who is a Canadian resident but spends six months per year in State V. The client maintains a…
- Which of the following agents must be registered in a state under the USA?
- Which of the following is NOT an exempt transaction under the USA, potentially requiring agent registration in the…
- Which of the following is NOT a condition for the Canadian BD and agent exemption under the USA?
- Which of the following entities is EXCLUDED from the definition of broker-dealer under the Uniform Securities Act?
- An agent of a broker-dealer is effecting transactions exclusively with the officers of the issuer in non-issuer…