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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionhardCanadian Broker-Dealer and Agent Limited Registration

In a state that has adopted NASAA's Canadian broker-dealer model rule, a Canadian broker-dealer wants to service an existing Canadian client who is temporarily in the state. Which statement is correct?

  1. AThe broker-dealer's status automatically covers every Canadian agent
  2. BBoth the broker-dealer and the acting agent must qualify under the applicable limited-registration procedure✓ Correct answer
  3. CNeither the broker-dealer nor the agent makes any state filing
  4. DThe agent may rely solely on the client's Canadian citizenship
Explanation

Why B — Both the broker-dealer and the acting agent must qualify under the applicable limited-registration procedure

The Canadian broker-dealer framework provides a limited registration procedure for qualifying cross-border activity. The broker-dealer's eligibility does not automatically cover its personnel; the agent effecting the transaction must also qualify under the applicable state procedure.

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