Series 63 Timed Practice – Registration Procedures

🧾 Series 63 Timed Practice – Registration Procedures
📘 Sharpen Your Speed and Accuracy on a High-Yield Topic

Registration procedures under the Uniform Securities Act (USA) make up a core portion of the Series 63 exam. Below is a timed mini-drill focused solely on registration of broker-dealers (BDs), agents, investment advisers (IAs), and investment adviser representatives (IARs).

✅ How to Use This Drill

• Set a timer for 7 minutes
• Answer all 7 questions without looking up explanations
• After time is up, review answers and explanations

⏱️ Series 63 Registration Procedures – Timed Questions

1. Which of the following must register with the state administrator?

A) A federal covered investment adviser with $150 million AUM and no office in the state
B) A bank offering securities advice to its clients
C) A broker-dealer located in the state with 3 institutional clients
D) An individual who solicits investment advisory clients and is compensated by a state-registered IA

2. An agent of a broker-dealer changes firms. What must happen?

A) Only the old firm must notify the administrator
B) Only the agent must notify the administrator
C) Both the old and new firms must notify the administrator
D) No notification is necessary

3. Under the USA, which of the following entities would NOT be defined as a broker-dealer?

A) A Canadian firm selling municipal bonds to U.S. institutions
B) A person with no office in the state and only dealing with issuers
C) A firm located in the state that buys and sells securities for others
D) An underwriter distributing shares in a new offering

4. When must an agent’s registration become effective at the state level?

A) 10 days after submission
B) Immediately upon administrator approval
C) 30 days after filing, if not denied or delayed
D) After passing the Series 63 exam only

5. Which of the following would cause a denial of an agent’s registration?

A) The applicant filed for bankruptcy five years ago
B) The applicant was convicted of a misdemeanor for petty theft two years ago
C) The applicant failed to pay state income taxes
D) The applicant was convicted of a felony related to securities six years ago

6. How long does registration remain effective without renewal?

A) 6 months
B) 1 year
C) 2 years
D) Indefinitely unless terminated

7. If an agent is no longer employed by a broker-dealer, what happens to their registration?

A) It stays active until the end of the calendar year
B) It is automatically transferred to another BD
C) It is terminated, and the agent must reapply if joining a new firm
D) It remains active for 30 days during transition

🧠 Answer Key + Explanations

1. ✅ D – IARs of state-registered IAs must register in any state where they do business.
2. ✅ C – BOTH the old and new BDs must notify the state administrator via Form U5 and U4 updates.
3. ✅ B – Firms with no office and only dealing with issuers, not clients, are excluded from the BD definition.
4. ✅ C – State registration becomes effective 30 days after filing, unless denied or delayed.
5. ✅ D – Felony convictions related to securities (within the past 10 years) are grounds for denial.
6. ✅ B – All state registrations expire annually on December 31, regardless of approval date.
7. ✅ C – Agent registration ends upon termination from the BD and must be re-filed under a new firm.

📊 Scoring Guide

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