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Series 63: Regulation of Broker-Dealers & Agents
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?

  1. AShe must be registered as an agent in State N.✓ Correct answer
  2. BShe may execute trades as long as she is registered in State M.
  3. COnly the broker-dealer needs to register in State N.
  4. DNo registration is needed if the clients are institutional.
Explanation

Why AShe 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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