Series 79 practice questioneasyBroker-Dealer Registration
Which of the following entities is NOT required to register as a broker-dealer under Exchange Act Section 15?
- AA firm solely effecting trades for its own account as principal
- BA bank dealing exclusively in government securities
- CA company introducing customer accounts to another broker-dealer
- DA commercial bank engaging in permissible securities activities detailed under the Bank Holding Company Act✓ Correct answer
Explanation
Why D — A commercial bank engaging in permissible securities activities detailed under the Bank Holding Company Act
Commercial banks that engage only in securities activities permitted under the Bank Holding Company Act are generally exempt from broker-dealer registration. The trap is that many assume all securities activities trigger registration, but permitted banking activities are an exception.
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