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← Series 79: Section 4
Series 79 practice questioneasyBroker-Dealer Registration

Which activity most clearly falls within a bank exception from Exchange Act broker registration?

  1. AA non-bank regularly effecting customer securities transactions
  2. BA non-bank dealer making a market in government securities
  3. CA company introducing customer accounts for transaction-based compensation
  4. DA bank effecting exempt trust and fiduciary transactions under Exchange Act Section 3(a)(4)(B)✓ Correct answer
Explanation

Why D — A bank effecting exempt trust and fiduciary transactions under Exchange Act Section 3(a)(4)(B)

The Exchange Act provides activity-specific bank exceptions. The Bank Holding Company Act is not itself the operative broker-registration test, and a person trading only for its own account may also fall outside the broker definition, making the old choices non-exclusive.

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