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Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumEdge Case - Multiple States

An issuer's registration by coordination becomes effective in State A, but a material change is disclosed in State B where qualification was used. What is the issuer's OBLIGATION regarding disclosure?

  1. AFile amendments in both states per each state's requirements✓ Correct answer
  2. BNotify only State B, since the material change occurred there
  3. CNo filing is needed if the federal registration is updated
  4. DAmend registration only in State A, since registration is coordinated
Explanation

Why AFile amendments in both states per each state's requirements

Issuers must comply with each state’s registration/amendment requirements, regardless of registration method, per USA Section 305. Federal updates (C) do not substitute for state amendments, and both states (A) must be notified.

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