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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumAgent Registration — Scenario

For a licensing checkpoint quiz, treat the following as the opening fact pattern. Read it as a Uniform Securities Act issue rather than a federal-law issue. Lisa is registered as an agent in State A through her broker-dealer. She attends a conference in State B and, during a networking event, recommends a specific stock to an attendee who lives in State B. Lisa is:

  1. ANot in violation because she was at a professional conference
  2. BNot in violation because she did not complete a sale
  3. CPotentially in violation because she attempted to effect a transaction in a state where she may not be registered✓ Correct answer
  4. DIn violation only if the attendee actually purchases the stock
Explanation

Why C — Potentially in violation because she attempted to effect a transaction in a state where she may not be registered

Under USA Section 201, an agent must be registered in each state where she effects or attempts to effect securities transactions. Making a specific recommendation to a resident of State B constitutes an attempt to effect a transaction there. Lisa may be in violation if she is not registered in State B, regardless of whether a sale is ultimately completed. The exam trick is the framing, not the underlying Uniform Securities Act rule.

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