🏦LTB
← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionhardAgent Registration — Scenario

During a compliance drill, focus on how the Uniform Securities Act applies here. Read it as a Uniform Securities Act issue rather than a federal-law issue. Marcus is an agent registered with a broker-dealer in State A. He receives a phone call from an existing client who recently moved to State B, where neither Marcus nor his broker-dealer is registered. The client asks Marcus to execute a trade. What should Marcus do?

  1. AExecute the trade since the client initiated the contact
  2. BDecline to execute the trade until both he and his broker-dealer are properly registered in State B✓ Correct answer
  3. CExecute the trade because the client relationship was established in State A
  4. DExecute the trade as long as he files for registration in State B within 30 days
Explanation

Why B — Decline to execute the trade until both he and his broker-dealer are properly registered in State B

Under USA Section 201, both the broker-dealer and the agent must be registered in the state where the client resides. Even though the client initiated the call and the relationship was established in another state, effecting transactions for a client domiciled in State B without registration there would violate the Act. Marcus must decline until proper registration is obtained. The exam trick is the framing, not the underlying Uniform Securities Act rule.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 63 freeSeries 63 exam guide
Related Regulation of Broker-Dealers & Agents questions