🏦LTB
← Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumFederal/State Coordination — Blue Sky Laws vs Federal

During a compliance drill, focus on how the Uniform Securities Act applies here. Treat the facts as a straight Series 63 application question. When a conflict exists between a state blue sky law and a federal securities law regarding the registration of a federal covered security, which law prevails?

  1. AThe state law always prevails under the 10th Amendment
  2. BThe SEC and the state Administrator must negotiate a resolution
  3. CThe issuer may choose which law to follow
  4. DFederal law prevails under the Supremacy Clause; the state cannot require registration of federal covered securities✓ Correct answer
Explanation

Why D — Federal law prevails under the Supremacy Clause; the state cannot require registration of federal covered securities

Under NSMIA and the Supremacy Clause of the U.S. Constitution, federal law preempts state law regarding the registration of federal covered securities. States cannot impose registration requirements on federal covered securities, though they may require notice filings and fees, and they retain full antifraud authority. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.

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 Securities & Issuers questions