Series 63 practice questionmediumEdge Cases—Dual Representation
Which is LEAST likely to result in an agent being required to register in BOTH State A (client's state) and State B (where the BD is headquartered)?
- AAn agent works remotely from State B and calls clients in State A to solicit trades.
- BThe agent meets clients physically in State A to close a sale.
- CThe agent provides only research support in State A, never contacting clients.✓ Correct answer
- DThe agent resides in State A but all client assets are held at the BD in State B.
Explanation
Why C — The agent provides only research support in State A, never contacting clients.
Registration requirements are triggered by soliciting or effecting trades with clients in a state (Sec. 402(b)). Research-only support does not create agent status in that state.
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