Series 63 – Uniform Securities Agent State Law Exam Definitions and Registration Requirements 2

Question 1

Which of the following individuals is excluded from the definition of 'agent' under the USA?

Accepted Answer

An employee who represents an issuer in selling exempt securities and receives no commission

Answer

A sales representative selling mutual funds

Answer

An employee of an issuer who sells securities in exchange for commissions

Answer

A broker-dealer representative who solicits clients

Question 2

What information is required on Form U4 when registering as an agent under the USA?

Accepted Answer

Disclosure of felony convictions and certain misdemeanor convictions, among other background information

Answer

Only employment history for the past two years

Answer

Only educational background

Answer

Only current employer information

Question 3

Which of the following securities is a 'covered security' that preempts state registration requirements?

Accepted Answer

Securities listed on the NYSE

Answer

Municipal bonds issued in a neighboring state

Answer

Securities sold only within one state

Answer

Securities issued by small local corporations

Question 4

Under the USA, a broker-dealer that has no office in a state and only deals with institutional clients in that state may qualify for which status?

Accepted Answer

Exempt from state registration

Answer

Full registration as a broker-dealer

Answer

Limited registration only

Answer

Temporary registration pending full approval

Question 5

What must a registered agent do when terminating employment with a broker-dealer under the USA?

Accepted Answer

Notify the Administrator and the broker-dealer promptly of the termination

Answer

File a new registration immediately with the new employer

Answer

Wait 30 days before registering with a new firm

Answer

Do nothing since the registration transfers automatically

Question 6

Under the USA, which entity has the authority to deny an initial registration application?

Accepted Answer

The state Administrator

Answer

Only the courts

Answer

Only FINRA

Answer

Only the SEC