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← Series 63: Regulation of Broker-Dealers & Agents
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)?

  1. AAn agent works remotely from State B and calls clients in State A to solicit trades.
  2. BThe agent meets clients physically in State A to close a sale.
  3. CThe agent provides only research support in State A, never contacting clients.✓ Correct answer
  4. 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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