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NASAA Series 63 Uniform Securities Agent State Law Exam

4. Regulation of Agents of Broker-Dealers: practice questions

Our Series 63 bank has 33 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Under the Uniform Securities Act, an agent is:

  1. An individual, other than a broker-dealer, who represents a broker-dealer or issuer in securities trades
  2. Any firm that buys and sells securities for customers
  3. Any person who gives advice about securities for a fee
  4. A corporation that sells its own stock to the public through its officers and employees
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A. An individual, other than a broker-dealer, who represents a broker-dealer or issuer in securities trades — Section 401(b) defines an agent as any individual other than a broker-dealer who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities.

Question 2

Under the Uniform Securities Act, which conviction can be a ground for denying an agent's registration?

  1. A traffic misdemeanor within the past ten years
  2. A felony conviction within the past ten years
  3. Any arrest, even without conviction
  4. A felony conviction 25 years ago
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B. A felony conviction within the past ten years — Section 204(a)(2)(C): conviction within the past ten years of any misdemeanor involving a security or the securities business, or of any felony.

Question 3

Under FINRA Rule 3210, before an associated person opens a securities account at another firm in which they have a beneficial interest, they must get:

  1. Approval from FINRA
  2. Approval from the state Administrator where the account is opened
  3. Nothing, if the account is small
  4. The prior written consent of their employing firm
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D. The prior written consent of their employing firm — Rule 3210(a): no associated person shall, without the prior written consent of the member, open an account at another member or financial institution in which securities transactions can be effected.

Question 4

Under the Uniform Securities Act, which allows the Administrator to cancel an agent's registration?

  1. The agent has a customer complaint pending
  2. The agent is behind on income taxes
  3. The agent has moved to another registered firm in the state
  4. The agent cannot be located after a reasonable search
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D. The agent cannot be located after a reasonable search — Section 204(d): the Administrator may cancel a registration if the registrant has ceased doing business, is adjudicated mentally incompetent or under a guardian, or cannot be located after reasonable search.

Question 5

An employee of a city sells the city's municipal bonds to investors. Under the Uniform Securities Act, the employee is:

  1. An agent who must register with the state before selling
  2. A broker-dealer, because the employee effects securities transactions
  3. Not an agent, because the bonds are exempt under section 402(a)(1)
  4. An investment adviser representative
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C. Not an agent, because the bonds are exempt under section 402(a)(1) — Section 401(b)(1)(A): an individual representing an issuer in transactions in securities exempted by 402(a)(1), (2), (3), (10) or (11) is not an agent.

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