Series 63 practice questioneasyAdministrative Procedures — Service of Process
Under the USA, when a non-resident broker-dealer registers in a state, it is deemed to have:
- AEstablished a permanent physical office in the state
- BWaived all rights to judicial review in that state
- CAgreed to be subject only to federal securities law
- DAppointed the Administrator as its agent for service of process✓ Correct answer
Explanation
Why D — Appointed the Administrator as its agent for service of process
Under USA Section 414, every applicant for registration who is a non-resident and every non-resident who has registered irrevocably appoints the Administrator as agent for service of process. This ensures that the state can serve legal documents even on out-of-state registrants.
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