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Series 63 practice questionmediumExempt Securities — Canadian Securities Exemption

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. Under the Uniform Securities Act, which of the following Canadian securities may qualify for an exemption from state registration?

  1. AOnly securities issued by the Government of Canada
  2. BSecurities issued by a Canadian province, but not those issued by a Canadian corporation
  3. CSecurities of Canadian issuers that meet specified criteria, including being listed on designated Canadian exchanges✓ Correct answer
  4. DAll Canadian securities without exception
Explanation

Why C — Securities of Canadian issuers that meet specified criteria, including being listed on designated Canadian exchanges

Under USA Section 401, certain Canadian securities may be exempt from state registration if they meet specified conditions, such as being listed on a designated Canadian exchange and meeting other requirements. This is broader than just government-issued securities and reflects the special status given to Canadian issuers under the USA. The exam trick is the framing, not the underlying Uniform Securities Act rule.

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