Series 63 practice questionmediumAgent Registration — Transfer
In a state-law practice set, a candidate reviews the following scenario. Read it as a Uniform Securities Act issue rather than a federal-law issue. Agent Tom leaves Broker-Dealer X and joins Broker-Dealer Y in the same state. What must occur for Tom to legally sell securities through Broker-Dealer Y?
- ABroker-Dealer Y must file a new registration application for Tom with the state Administrator✓ Correct answer
- BTom must wait 30 days before conducting any business with Broker-Dealer Y
- CTom's existing registration automatically transfers to Broker-Dealer Y
- DTom needs only to notify the Administrator by letter that he has changed firms
Explanation
Why A — Broker-Dealer Y must file a new registration application for Tom with the state Administrator
Under the USA, an agent's registration is linked to the employing broker-dealer. When an agent changes firms, the new broker-dealer must file a registration application for that agent. The registration does not automatically transfer. Tom cannot legally transact business through Broker-Dealer Y until the new registration is effective. The extra setup is just noise; the controlling state-law rule stays the same.
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