Lucky the Banker mascotLTB
← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumSnowbird Exemption vs. Registration

Which of the following scenarios would NOT qualify for the snowbird exemption for broker-dealers under the USA?

  1. AA BD in State L has a Massachusetts client who is vacationing in State L for a week.
  2. BA BD in State M executes trades for a client who maintains permanent residence in State M but is on extended business in State X.
  3. CA BD in State N solicits new clients among vacationers from other states at a resort.✓ Correct answer
  4. DA BD processes orders for an existing client who is vacationing temporarily in State O
Explanation

Why C — A BD in State N solicits new clients among vacationers from other states at a resort.

The temporary-client or snowbird relief applies to an existing client who is temporarily present in another state. Soliciting new clients at a resort does not qualify; A, B, and revised D describe existing-client relationships during temporary travel.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 63 freeSeries 63 exam guide

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Regulation of Broker-Dealers & Agents questions