Series 63 practice questioneasyBonding Alternatives
If required to post a bond, a broker-dealer may alternatively satisfy this requirement by:
- ADepositing cash or securities as permitted by the Administrator.✓ Correct answer
- BProviding a written promise to pay if claims arise.
- CSubmitting a letter of intent from a bank.
- DFiling the firm’s profit-sharing plan.
Explanation
Why A — Depositing cash or securities as permitted by the Administrator.
The USA (Section 202(e)) allows deposit of cash or securities in lieu of a surety bond, if approved by the Administrator. Written promises, letters of intent, or unrelated documents do not suffice.
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