🏦LTB
← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumAgent Registration — Transfer

In a state-law practice set, a candidate reviews the following scenario. Treat the facts as a straight Series 63 application question. 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?

  1. ABroker-Dealer Y must file a new registration application for Tom with the state Administrator✓ Correct answer
  2. BTom must wait 30 days before conducting any business with Broker-Dealer Y
  3. CTom's existing registration automatically transfers to Broker-Dealer Y
  4. 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. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 63 freeSeries 63 exam guide
Related Regulation of Broker-Dealers & Agents questions