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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasyBroker-Dealer Registration — Requirements

For a mock NASAA exam, assume the administrator is testing this exact point. Focus on what changes once the scenario is viewed through state law. A broker-dealer that wishes to conduct business in a state must first:

  1. AObtain a license from the SEC
  2. BFile articles of incorporation with the Secretary of State
  3. CObtain approval from FINRA only
  4. 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. This version tests the same concept with a different fact pattern wrapper.

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