Series 63 practice questioneasyBroker-Dealer Registration — Requirements
For a mock NASAA exam, assume the administrator is testing this exact point. Prioritize the registration trigger and ignore irrelevant noise. A broker-dealer that wishes to conduct business in a state must first:
- AObtain a license from the SEC
- BFile articles of incorporation with the Secretary of State
- CObtain approval from FINRA only
- DRegister with the state Administrator✓ Correct answer
Explanation
Why D — Register with the state Administrator
Under USA Section 201, it is unlawful for any person to transact business in a state as a broker-dealer unless registered with the state Administrator. SEC registration and FINRA membership may also be required but do not substitute for state registration. The governing USA principle is unchanged even though the framing is different.
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