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Series 63 · 13% of the exam

Regulation of Agents of Broker-Dealers practice questions

10 free Regulation of Agents of Broker-Dealers questions for the Uniform Securities Agent State Law Exam (Series 63) exam, each with the correct answer and an explanation for every option.

Start the questionsFree 10-question Series 63 quiz

What this domain covers

Individuals who represent broker-dealers or issuers in selling securities: when registration is required, the exclusions from the definition of agent, and what happens on changing firms or leaving.

Exam weight
13%
On a real exam
≈ 8 questions
In our bank
78 questions

Topics that come up most

  • Definition of agent and the issuer-related exclusions
  • When a clerical employee becomes an agent
  • Registration, transfer and termination notices
  • Association with only one broker-dealer at a time
  • Supervision and the firm's responsibility for its agents

How to study it

List who is not an agent when representing an issuer, such as those selling exempt securities or in exempt transactions; it is one of the most predictable question sets.

Sample Regulation of Agents of Broker-Dealers questions

Try each one before opening the answer. Original questions written to the official exam objectives.

  1. Question 1

    An agent changes home address. The agent's registration record should be:

    • APromptly amended
    • BLeft as is
    • CWithdrawn
    • DRe-filed yearly only
    Show answer and explanation

    Answer: A) Promptly amended

    • ACorrect. Form U4 must be kept current.
    • BIncorrect. Updates are required.
    • CIncorrect. An amendment is enough.
    • DIncorrect. Updates must be prompt.

  2. Question 2

    An agent sells only federal covered securities, such as listed stocks, for a broker-dealer. The agent:

    • ANeed not register, since the securities are federal covered
    • BMust still register as an agent
    • CMust register as an issuer instead
    • DNeed only file a notice like the issuer
    Show answer and explanation

    Answer: B) Must still register as an agent

    • AIncorrect. Agents still register.
    • BCorrect. Federal covered status applies to securities, not people.
    • CIncorrect. They're an agent.
    • DIncorrect. Notice filing is for securities.

  3. Question 3

    FINRA has barred an applicant for agent registration. In the applicant's state filing, the Administrator may:

    • AGrant the registration only with FINRA's written consent
    • BNot consider it, since FINRA is a private organization
    • CUse the SRO action as a ground to deny registration
    • DConsider it only if the applicant was also convicted of a crime
    Show answer and explanation

    Answer: C) Use the SRO action as a ground to deny registration

    • AIncorrect. The Administrator decides.
    • BIncorrect. It may be considered.
    • CCorrect. SRO bars and expulsions are listed grounds.
    • DIncorrect. It's a ground by itself.

  4. Question 4

    Which of the following generally must register as an agent in a state under the Uniform Securities Act?

    • AAn individual employed by a registered broker-dealer who solicits stock orders from retail customers in the state
    • BAn individual who represents a city in selling the city's own general obligation municipal bonds to investors
    • CAn issuer's employee who sells the issuer's stock to fellow employees through a benefit plan, receiving no commission
    • DA corporation registered as a broker-dealer that executes customer trades on a national exchange
    Show answer and explanation

    Answer: A) An individual employed by a registered broker-dealer who solicits stock orders from retail customers in the state

    An agent is an individual, other than a broker-dealer, who represents a broker-dealer or an issuer in effecting securities transactions. Issuer representatives who sell certain exempt securities or sell to employees without a commission are excluded or exempt.

    • ACorrect. An individual who represents a broker-dealer in effecting or attempting to effect securities transactions is an agent, and no exclusion or exemption applies to soliciting retail orders.
    • BIncorrect. An individual representing an issuer in transactions in certain exempt securities, such as municipal securities, is excluded or exempt from agent registration.
    • CIncorrect. An individual representing an issuer in transactions with its employees under an employee benefit plan is excluded or exempt from agent registration when no commission or similar pay is received for soliciting.
    • DIncorrect. An agent must be an individual other than a broker-dealer. The firm registers as a broker-dealer, not as an agent.

  5. Question 5

    After an agent's registration is withdrawn, the Administrator may still start a revocation proceeding within:

    • A30 days
    • B1 year
    • C10 years
    • DNo time at all
    Show answer and explanation

    Answer: B) 1 year

    • AIncorrect. The period is one year.
    • BCorrect. The Administrator keeps jurisdiction for one year.
    • CIncorrect. The period is one year.
    • DIncorrect. The period is one year.

  6. Question 6

    An agent sells a client a non-exempt security that isn't registered in the state. Under the Act, the agent may be:

    • ACivilly liable to the buyer, jointly with the seller
    • BFree from liability, since only the issuer is liable
    • CLiable only if the agent knew the client personally
    • DLiable only to the firm, not to the client
    Show answer and explanation

    Answer: A) Civilly liable to the buyer, jointly with the seller

    • ACorrect. Agents who materially aid a sale share liability.
    • BIncorrect. The agent can be liable.
    • CIncorrect. That isn't the test.
    • DIncorrect. The client can sue.

  7. Question 7

    An issuer's employee sells the issuer's non-exempt IPO shares to the public for a commission. The employee is:

    • AAn agent
    • BExcluded
    • CAn adviser
    • DA dealer
    Show answer and explanation

    Answer: A) An agent

    • ACorrect. Commissioned sales of non-exempt securities require registration.
    • BIncorrect. The exclusion doesn't apply.
    • CIncorrect. They sell, not advise.
    • DIncorrect. Individuals representing issuers are agents.

  8. Question 8

    A client of an agent registered only in State A moves permanently to State B. To keep soliciting the client, the agent must:

    • AOnly notify FINRA
    • BDo nothing
    • CRegister in State B
    • DWait one year
    Show answer and explanation

    Answer: C) Register in State B

    • AIncorrect. State registration is needed.
    • BIncorrect. Registration in State B is needed.
    • CCorrect. The agent needs registration where the client now lives.
    • DIncorrect. Registration is needed first.

  9. Question 9

    An agent's state registration lapsed at year-end because the renewal was not filed. Before the registration is reinstated, the agent accepts and executes several purchase orders from long-time clients in that state and is paid commissions. Which statement is accurate under the Uniform Securities Act?

    • AThe agent transacted business in the state without being registered, which violates the Act
    • BThere is no violation because the agent was registered last year and the orders came from existing clients
    • CThere is no violation if the renewal is filed soon enough to make the registration retroactive
    • DOnly the broker-dealer violated the Act, because filing renewals is the firm's responsibility
    Show answer and explanation

    Answer: A) The agent transacted business in the state without being registered, which violates the Act

    An agent must be registered at the time they transact business in a state. Selling while the registration has lapsed violates the Act, and neither a later renewal nor the firm's own liability cures it.

    • ACorrect. The Act makes it unlawful for any person to transact business in the state as an agent unless registered. Because the registration had lapsed, the agent was unregistered when the orders were executed.
    • BIncorrect. The Act has no exception that lets an agent keep doing business with existing clients after a registration lapses. Registration must be in effect at the time of the transaction.
    • CIncorrect. A later renewal or reinstatement does not apply backward to cover business done while the agent was unregistered.
    • DIncorrect. The Act also makes it unlawful for a broker-dealer to employ an unregistered agent, so the firm may be in violation too. That does not excuse the agent, who personally transacted business while unregistered.

  10. Question 10

    An agent applies for registration in this state. Four years ago, another state's securities Administrator issued an order revoking the applicant's agent registration there. How may this state's Administrator treat that order?

    • AIt cannot be considered, because the order came from a different state's jurisdiction
    • BIt can be considered only if the SEC has also issued an order against the applicant
    • CIt can be grounds for denial, because the order was entered within the past 5 years
    • DIt cannot be considered, because only orders entered within the past 3 years count
    Show answer and explanation

    Answer: C) It can be grounds for denial, because the order was entered within the past 5 years

    Under the Uniform Securities Act, an order by another state's administrator (or the SEC) denying or revoking registration within the past 5 years is grounds to deny registration. A revocation 4 years ago qualifies.

    • AIncorrect. Under the Uniform Securities Act, an order by another state's securities administrator denying or revoking registration is an express ground for denial. It is not limited to the issuing state.
    • BIncorrect. An order from another state's administrator is a ground for denial on its own. A matching SEC order isn't required.
    • CCorrect. One statutory ground for denial is an order denying or revoking registration that another state's securities administrator or the SEC entered within the past 5 years. A revocation 4 years ago falls inside that period.
    • DIncorrect. The lookback period for other states' and SEC orders is 5 years, not 3. An order from 4 years ago still counts.

Regulation of Agents of Broker-Dealers: FAQs

How much of the Series 63 exam is Regulation of Agents of Broker-Dealers?

Regulation of Agents of Broker-Dealers is 13% of the Series 63 exam by the official exam guide's weighting, which on a 65-question form works out to roughly 8 questions. The real exam's exact split varies by form.

What does the Regulation of Agents of Broker-Dealers domain cover?

Individuals who represent broker-dealers or issuers in selling securities: when registration is required, the exclusions from the definition of agent, and what happens on changing firms or leaving.

How should I study Regulation of Agents of Broker-Dealers for Series 63?

List who is not an agent when representing an issuer, such as those selling exempt securities or in exempt transactions; it is one of the most predictable question sets.

Where can I practise more Regulation of Agents of Broker-Dealers questions?

This page has 10 free Regulation of Agents of Broker-Dealers questions with answers. The ExamWize Series 63 question bank has 78 questions in this domain. Every practice exam result breaks your score down by domain, and Review Mode re-drills the questions you missed.

Other Series 63 topics

Also: 15 free questions across all topics, the Series 63 cheat sheet and the study guide.

Get Regulation of Agents of Broker-Dealers exam-ready

The full Series 63 bank has 78 Regulation of Agents of Broker-Dealers questions. Timed practice exams match the real exam's length and domain weights, every result shows your score per domain, and Review Mode re-drills the questions you missed.

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Not affiliated with NASAA; questions are original, written from the official exam outline, and never copied from the real exam.