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← Series 63: Regulation of Securities & Issuers
Series 63 practice questioneasyExempt Securities — Bank Securities

For a licensing checkpoint quiz, treat the following as the opening fact pattern. The key is the registration, exemption, or ethical rule doing the real work. Securities issued by a bank organized under the laws of the United States are:

  1. ARequired to be registered by qualification
  2. BRequired to be registered by coordination
  3. CExempt from state registration under the USA✓ Correct answer
  4. DSubject to the same registration requirements as all other issuers
Explanation

Why C — Exempt from state registration under the USA

Under USA Section 401, securities issued by banks, savings institutions, and trust companies organized under U.S. or state law are exempt from state registration requirements. The rationale is that these institutions are already heavily regulated by federal and state banking authorities, providing adequate investor protection. The exam trick is the framing, not the underlying Uniform Securities Act rule.

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