Series 63 practice questionmediumAgent Registration: Covered Securities
An agent, registered only in State X, takes an unsolicited order from a client who recently moved to State Y. The order is for NYSE-listed stock. Which action is required under the USA?
- AThe agent must register in State Y before accepting the order✓ Correct answer
- BThe agent may accept the unsolicited order without registering in State Y
- CThe agent must register the NYSE stock in State Y
- DThe agent may accept the order only after informing State Y’s Administrator
Explanation
Why A — The agent must register in State Y before accepting the order
The NYSE-listed security is federal covered and the unsolicited trade may be an exempt transaction, but those facts do not generally exempt an agent representing a broker-dealer from State Y agent-registration requirements. The agent must register in State Y before effecting the transaction unless a separate agent-registration exception applies.
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