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?
- AFile amendments in both states per each state's requirements✓ Correct answer
- BNotify only State B, since the material change occurred there
- CNo filing is needed if the federal registration is updated
- DAmend registration only in State A, since registration is coordinated
Explanation
Why A — File 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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