Series 63 practice questionmediumAgent Registration—Multiple States
An agent registered in State M is transferred by her broker-dealer to State N to service new clients. What must occur before she executes trades in State N?
- AShe must be registered as an agent in State N.✓ Correct answer
- BShe may execute trades as long as she is registered in State M.
- COnly the broker-dealer needs to register in State N.
- DNo registration is needed if the clients are institutional.
Explanation
Why A — She must be registered as an agent in State N.
An agent must be registered in a state before conducting business there (USA Section 402(a)). B is incorrect because dual registration is required. C does not address agent registration. D is not correct for agents.
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