Series 63 practice questioneasyCanadian BD agent exemption
An agent representing a Canadian broker-dealer is effecting trades for a Canadian citizen temporarily in State L. The account was established in Canada before the client visited State L. Under the USA, the agent:
- AMust obtain full agent registration in State L.
- BMay act without any registration or filing in State L.
- CMay be exempt if certain notice filings are made.✓ Correct answer
- DCan only transact in Canadian securities.
Explanation
Why C — May be exempt if certain notice filings are made.
Canadian BDs and their agents may be exempt with proper notice filings for pre-existing Canadian accounts per USA 401(b)(3). Full agent registration (A) is not required, and trading is not limited to Canadian securities (D).
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