Series 63 practice questionmediumBonding - Exemptions
Which broker-dealer is LEAST likely to be required to post a surety bond under the USA?
- AA firm that does not have custody or discretionary authority.✓ Correct answer
- BA firm with authority to move client funds.
- CA firm with full power of attorney on client accounts.
- DA firm holding client securities in its vault.
Explanation
Why A — A firm that does not have custody or discretionary authority.
Bond requirements generally apply to firms with custody or discretion (USA Section 202(c)). Firms without custody or discretionary authority are least likely to be required to post a bond.
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