Series 63 practice questionmediumExemptions — Agents of Exempt Broker-Dealers
If a broker-dealer is exempt from state registration, the agents of that broker-dealer:
- AMust still individually register in the state regardless of the firm's exemption
- BAre also exempt from state registration when acting within the scope of the exemption✓ Correct answer
- CMay register voluntarily but are not required to do so
- DAre exempt only if they have passed the Series 63 exam
Explanation
Why B — Are also exempt from state registration when acting within the scope of the exemption
Under the USA, when a broker-dealer qualifies for an exemption from state registration, its agents acting within the scope of that exemption are generally also exempt. The agent exemption is derivative of the broker-dealer's exemption and applies only when the agent is conducting the specific exempt activities.
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