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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasyAgent Registration — Requirements

On a final review set, the question is presented in this context. The key is the registration, exemption, or ethical rule doing the real work. Under the USA, an individual acting as an agent of a broker-dealer in a state must:

  1. ARegister only with the SEC
  2. BRegister in the state where the agent conducts business✓ Correct answer
  3. CObtain a state business license from the Secretary of State
  4. DFile a separate registration for each customer account
Explanation

Why BRegister in the state where the agent conducts business

Under USA Section 201, it is unlawful for any person to transact business as an agent in a state unless the agent is registered under the Act. Agent registration is required in each state where the individual conducts securities activities on behalf of a broker-dealer. The extra setup is just noise; the controlling state-law rule stays the same.

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