Free NASAA Series 63 (Uniform Securities Agent State Law Examination) Regulation of Agents of Broker-Dealers Practice Questions
Regulation of agents of broker-dealers on the NASAA Series 63 exam covers agent registration requirements, termination procedures, compensation limitations, and prohibited practices under state securities law.
Sample Questions
Question 1
Easy
An agent's registration with the Administrator becomes effective at what time?
Solution
D is correct. Under the Uniform Securities Act, an application for registration (including that of an agent) becomes effective at noon of the 30th day after a complete application has been filed, provided no denial order is in effect and no proceeding is pending.
Question 2
Medium
When a registered agent terminates employment with one broker-dealer to join another, all of the following are true under the Uniform Securities Act EXCEPT:
Solution
B is correct. A state registration is tied to a specific broker-dealer; it does not move automatically when the agent changes firms. The prior firm must file Form U5 to terminate the registration, and the new firm must file a Form U4 to register the agent before the agent acts on its behalf. Notice of the termination is the joint responsibility of the agent and both broker-dealers.
Question 3
Hard
Dashiell, a registered agent in States X and Y, experiences several events within the same month. Under the Uniform Securities Act and the uniform registration forms, each event obligates him to act as described EXCEPT:
Solution
C is correct. Completing a continuing education session is an internal training requirement and is not information reported on Form U4, so it triggers no amendment. The remaining events are each reportable: a new residential address is a material change, a felony charge is a criminal disclosure even when unrelated to securities, and a customer complaint settled for $40,000 exceeds the reporting threshold for settled sales-practice complaints. Each of those events requires a Form U4 amendment.