Series 63 Review – State Laws Made Simple

📘 Series 63 Review – State Laws Made Simple

The Series 63 exam is your gateway to registering as a securities agent in most U.S. states. While the content focuses on state laws and regulations, many candidates find the legal language and structure of the Uniform Securities Act (USA) challenging to absorb. This guide breaks it all down — simply, clearly, and exam-ready.

🏛️ What Is the Uniform Securities Act?

The Uniform Securities Act is a model law that provides a framework for states to regulate securities. The Series 63 exam tests how well you understand:

🔹 Who must register — broker-dealers, agents, investment advisers, and IARs
🔹 What must register — securities offered in the state
🔹 When registration is required — based on state presence, offers, and client location
🔹 Exemptions — from registration and from filing requirements
🔹 Anti-fraud rules — applicable to all securities and all persons

📚 Key State Law Concepts to Know

✅ Broker-Dealer vs. Agent

• Broker-dealer: A firm that buys/sells securities
• Agent: An individual who represents a BD in transactions
• Agents must register in every state they do business

✅ Investment Adviser vs. IAR

• IAs register federally or with the state (depending on AUM)
• IARs always register at the state level, even if their firm is SEC-registered

✅ Securities Registration Methods

• Notification (Filing): For large, established issuers
• Coordination: Used with SEC registration
• Qualification: For intrastate offerings

✅ Exempt Securities & Transactions

• U.S. government and municipal bonds
• Nonprofit and bank-issued securities
• Private placements and isolated non-issuer transactions

✅ Administrator Authority

• Can subpoena documents
• Conduct investigations across state lines
• Issue cease-and-desist orders
• Deny, suspend, or revoke registrations

⚖️ Ethical Practices and Fraud Prevention

The Series 63 heavily emphasizes fiduciary conduct and client protection:

🔹 Misrepresentation and omission of facts
🔹 Conflicts of interest and disclosure requirements
🔹 Custody vs. discretionary authority
🔹 Churning, unsuitable recommendations, and unauthorized trades

🧠 Tips for Making State Laws Simple

• Group terms into categories (registration, exemptions, fraud)
• Use flashcards for definitions (especially terms like agent, issuer, offer)
• Practice with scenario-based questions to apply the law
• Don’t just memorize — understand why the rule exists
• Focus on Administrator powers — this is highly testable

🚀 Simplify Your Study Process

Mastering state securities law doesn’t have to be overwhelming. Our complete Series 63 prep platform breaks down every rule, exemption, and requirement into clear, test-focused lessons.

Access summaries, cheat sheets, and full-length practice exams now at:
👉 finra-exam-mastery.com