Series 63 practice questionmediumPreemption—effect on agent registration
If an agent in State Z exclusively sells shares of federal covered securities, which statement is TRUE?
- AThe agent must register in State Z if representing a broker-dealer.✓ Correct answer
- BThe agent is exempt from state registration under NSMIA.
- CThe agent must only register with the SEC.
- DThe agent is subject to registration only if selling exempt securities.
Explanation
Why A — The agent must register in State Z if representing a broker-dealer.
NSMIA preemption extends only to security registration, not to agent or broker-dealer registration (USA 402). Agents of broker-dealers must register at the state level regardless of the securities offered.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Securities & Issuers questions
- A mutual fund registered under the Investment Company Act is late paying its annual notice filing fee in State E, but…
- A closed-end investment company that is NOT registered under the Investment Company Act of 1940 offers its shares in a…
- A junior banker at William Blair suspects a fraudulent omission in a Reg D (Rule 506) offering in State S. What is the…
- Which security would MOST likely still be subject to substantive state review for registration purposes?
- A junior banker in IL assists with a public offering of federal covered securities by a CA company. Untrue statements…
- A company conducts an offering under SEC Rule 147 (intrastate exemption) in State Y. Which regulatory authority applies?
- A charitable organization issues bonds to fund a new community center. The organization is a nonprofit with no part of…
- All of the following describe proper state Administrator actions regarding a Rule 506 Regulation D private placement…