Series 63 State Law Chart – Printable Resource
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
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Series 63 State Law Chart – Printable Resource
Understanding state securities laws is essential to passing the Series 63 exam. This printable resource offers a clear, organized summary of the most tested Uniform Securities Act (USA) rules, exemptions, registration requirements, and prohibited practices.
Use this chart as a last-minute review tool, printable study aid, or visual guide for mastering the regulatory framework enforced by state administrators.
📜 State vs. Federal Jurisdiction
| Topic | State Jurisdiction | Federal Jurisdiction |
|---|---|---|
| Securities Registration | Required unless exempt or federally covered | Federally covered securities preempt state law |
| Broker-Dealer Registration | Required if doing business in the state | Required if transacting in interstate commerce |
| Investment Adviser (IA) | State registration if AUM < $100M and no federal exemption | SEC registration if AUM ≥ $110M |
| Agents (Registered Reps) | Must register in each state where they sell | No federal registration required |
| IARs (Investment Adviser Reps) | State registration required | SEC-registered IAs must register IARs only in states where they have clients |
🛡 Exemptions & Exclusions Under the USA
| Concept | Definition | Key Examples |
|---|---|---|
| Exempt Securities | Do not require registration | U.S. gov’t bonds, munis (in-state), commercial paper (<270 days), banks |
| Exempt Transactions | Do not require registration | Private placements, isolated non-issuer transactions, unsolicited orders |
| Exclusion from “Broker-Dealer” | Not considered BDs | Issuers, banks, agents, or out-of-state firms with no physical presence or retail clients |
| Exclusion from “Agent” | Not considered agents | Clerical staff, certain reps of exempt securities/transactions |
🚫 Prohibited Practices
| Violation | Description |
|---|---|
| Misrepresentation/Omission | Withholding material facts or exaggerating returns |
| Churning | Excessive trading to generate commissions |
| Unsuitable Recommendations | Failing to assess client goals and risk tolerance |
| Commingling | Mixing client and firm assets |
| Front Running | Executing trades ahead of client orders |
| Unauthorized Transactions | Trading without client consent |
| Failing to Supervise | Supervisory failure by firms or supervisors |
📆 Key Timing Requirements
| Filing/Event | Timing |
|---|---|
| Form ADV Updates | Annually within 90 days of fiscal year-end |
| Agent/IAR Termination (Form U5) | Must notify Administrator promptly |
| Renewal of State Registrations | December 31 (annual deadline) |
| Withdrawal from Registration | Effective in 30 days unless disciplinary action is pending |
🧠 Use This Chart To:
- Reinforce USA regulatory distinctions
- Memorize exemptions and key terms
- Review prohibited practices right before exam day
- Visualize the structure of state-level registration and oversight
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