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.
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