Free NASAA Series 63 (Uniform Securities Agent State Law Examination) Ethical Practices and Obligations Practice Questions
Ethical practices and obligations on the NASAA Series 63 exam cover fiduciary duty, suitability, conflicts of interest, insider trading prohibitions, privacy regulations, and the duty to act in the best interest of clients.
238 questions87 easy94 medium57 hard2026 syllabus
Sample Questions
Question 1
Easy
A state-registered investment adviser may do all of the following EXCEPT:
🎉
Correct Answer: A
Solution
A is correct. Client assets must be segregated and held with a qualified custodian. Commingling client securities with the firm's own assets and pledging them to secure a firm loan is a prohibited use of customer property. The other three actions are permitted ways to handle client assets and authority.
Question 2
Medium
All of the following constitute prohibited conduct by an agent EXCEPT:
🎉
Correct Answer: C
Solution
C is correct. Recommending a fund whose 12b-1 compensation is disclosed to the client and approved by the firm is permissible because the conflict is disclosed and supervised. Borrowing from a customer who is not a lending institution, selling away from the firm without authorization, and churning are each prohibited practices.
Question 3
Hard
Under the Uniform Securities Act and NASAA model rules, all of the following firm practices are permissible EXCEPT:
🎉
Correct Answer: A
Solution
A is correct. NASAA's Statement of Policy bars an agent from sharing in a customer's account without the written authorization of both the customer and the firm, so sharing without the firm's written approval is prohibited; the further condition that the agent's share match the capital each party contributes comes from FINRA Rule 2150. Delaying a disbursement on a reasonable belief of exploitation, exercising same-day time-and-price discretion, and promptly forwarding a third-party check to the custodian are each permitted.
FreeFellow was built by Jeffrey Ting, a credentialed actuary and CFA charterholder who has passed thirteen of the hardest exams in finance, all on his first attempt. He paid four-figure prep fees along the way.
So he started writing his own questions, then lessons, then mock exams, until it grew into a full prep platform covering 40 exams with more than 46,000 original practice questions.
01
Cost shouldn't decide who gets in.
A CFA charter, a CPA license, an actuarial credential. Each opens a real career, but prep fees add to the cost of getting there. FreeFellow keeps its original question bank and written lessons free so you can study even if a paid course is out of reach.
02
Free should mean free.
The original question bank, the worked solutions, the topic lessons, mixed practice, and your readiness score stay free, forever. Full access needs a free account, and practice usage limits apply. Fellow adds AI grading on supported exams, spaced-repetition flashcards, full-length mock exams, analytics, and a study plan that adapts to your progress.
