Series 63 practice questioneasyAdministrator Powers — Insolvency
During a registration workshop, the instructor adds this setup first. Prioritize the registration trigger and ignore irrelevant noise. Under the USA, the insolvency of which of the following is grounds for denial or revocation of registration?
- AAn agent
- BA broker-dealer or investment adviser✓ Correct answer
- CA client of the broker-dealer
- DAn issuer of exempt securities
Explanation
Why B — A broker-dealer or investment adviser
Under USA Section 204(a)(2)(H), insolvency is a ground for denial or revocation of the registration of a broker-dealer or investment adviser because they hold client funds and assets. Insolvency of an agent (who does not hold customer funds independently) is not separately addressed as a ground. The governing USA principle is unchanged even though the framing is different.
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.
Related Remedies & Administrative Provisions questions
- For a licensing checkpoint quiz, treat the following as the opening fact pattern. Prioritize the registration trigger…
- On a final review set, the question is presented in this context. Prioritize the registration trigger and ignore…
- In a state-administrator case study, the scenario starts here. Prioritize the registration trigger and ignore…
- In a remedial practice session, the fact pattern is framed this way. Prioritize the registration trigger and ignore…