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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumExemptions — Agents of Exempt Broker-Dealers

During a compliance drill, focus on how the Uniform Securities Act applies here. The key is the registration, exemption, or ethical rule doing the real work. If a broker-dealer is exempt from state registration, the agents of that broker-dealer:

  1. AMust still individually register in the state regardless of the firm's exemption
  2. BAre also exempt from state registration when acting within the scope of the exemption✓ Correct answer
  3. CMay register voluntarily but are not required to do so
  4. DAre exempt only if they have passed the Series 63 exam
Explanation

Why B — Are also exempt from state registration when acting within the scope of the exemption

Under the USA, when a broker-dealer qualifies for an exemption from state registration, its agents acting within the scope of that exemption are generally also exempt. The agent exemption is derivative of the broker-dealer's exemption and applies only when the agent is conducting the specific exempt activities. The extra setup is just noise; the controlling state-law rule stays the same.

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