Series 63 practice questionmediumAgent Registration — Termination
When an agent's employment with a registered broker-dealer is terminated, who is responsible for notifying the state Administrator?
- AOnly the agent
- BOnly the broker-dealer
- CBoth the agent and the broker-dealer must promptly notify the Administrator✓ Correct answer
- DThe Administrator is automatically notified through FINRA
Explanation
Why C — Both the agent and the broker-dealer must promptly notify the Administrator
Under USA Section 202(c), when an agent ceases to be employed by a broker-dealer, both the agent and the broker-dealer must promptly notify the state Administrator. This dual notification requirement ensures the Administrator receives timely and accurate information about changes in agent registration status.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Broker-Dealers & Agents questions
- A junior research analyst at William Blair receives a year-end bonus based on firm revenues, but does not have direct…
- All of the following individuals would be classified as agents, EXCEPT:
- Which is LEAST likely to result in an agent being required to register in BOTH State A (client's state) and State B…
- Which of the following scenarios would MOST LIKELY require agent registration under the USA?
- A junior banker at William Blair solicits the sale of 8-month commercial paper (promissory notes) to 20 corporate…
- An employee of ABC Corp. represents the issuer in a private placement that qualifies as an exempt transaction under the…
- An agent of a BD registered only in State X cold-calls a prospective client in State Y from an office in State X and…
- Which of the following individuals employed by a broker-dealer is LEAST likely to be required to register as an agent…