Series 63 practice questioneasyExemptions — Broker-Dealer Exemptions
Which of the following broker-dealers is MOST LIKELY exempt from registration in a state?
- AA firm that maintains a branch office in the state and serves retail clients
- BA firm with no office in the state that deals exclusively with insurance companies in that state✓ Correct answer
- CA firm that advertises its services to the general public in the state
- DA firm that employs 50 agents in the state
Explanation
Why B — A firm with no office in the state that deals exclusively with insurance companies in that state
Under USA Section 401(c), a broker-dealer with no office in a state that transacts business exclusively with institutional investors such as insurance companies is exempt from registration in that state. Firms with offices, agents, or retail clients in a state are generally required to register.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Regulation of Broker-Dealers & Agents questions
- A broker-dealer registered in State A but not State B sends a research report to an investment company headquartered in…
- A federal covered adviser that has clients in a state must:
- Under NASAA model rules, a Canadian broker-dealer may be exempt from state registration when dealing with a Canadian…
- Global Investments, a Canadian broker-dealer with no U.S. office, effects transactions exclusively with U.S.…