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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumAgent Registration — Scenario

In a remedial practice session, the fact pattern is framed this way. Read it as a Uniform Securities Act issue rather than a federal-law issue. A broker-dealer has its registration revoked in State Y. What happens to the registration of the agents associated with that broker-dealer in State Y?

  1. AThe agents' registrations are automatically suspended✓ Correct answer
  2. BThe agents' registrations remain valid for 90 days
  3. CThe agents may continue to transact business if they file individual applications
  4. DThe agents' registrations are unaffected by the broker-dealer's revocation
Explanation

Why AThe agents' registrations are automatically suspended

Under USA Section 202, an agent's registration is dependent on the broker-dealer's registration. If the broker-dealer's registration is revoked, suspended, or otherwise terminated, the agent's registration is automatically suspended. Agents cannot operate independently of a registered broker-dealer. The governing USA principle is unchanged even though the framing is different.

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