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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 CThe 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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