Series 63 – Uniform Securities Agent State Law Exam Definitions and Registration Requirements 1 — Questions and Answers
Question 1: Under the Uniform Securities Act, which of the following is NOT considered a security?
- A variable annuity
- A fixed annuity (Correct answer)
- A convertible bond
- An investment contract
Correct answer: A fixed annuity
Fixed annuities are insurance products, not securities, and are therefore excluded from the definition of a security under the USA.
Question 2: Under the USA, which of the following persons qualifies as an 'agent'?
- An individual who represents an issuer selling exempt securities
- An individual who represents a broker-dealer in effecting securities transactions (Correct answer)
- A partner of a partnership who effects transactions solely for the partnership
- An officer of an issuer selling only to existing shareholders
Correct answer: An individual who represents a broker-dealer in effecting securities transactions
An agent is any individual who represents a broker-dealer or issuer in effecting or attempting to effect transactions in securities.
Question 3: Which of the following is required for a broker-dealer to legally conduct business in a state under the USA?
- Federal SEC registration only
- State registration with the Administrator (Correct answer)
- FINRA membership only
- Written consent from clients
Correct answer: State registration with the Administrator
Broker-dealers must register with the state Administrator unless they qualify for an exemption or are federally covered.
Question 4: Under the USA, the term 'issuer' refers to which of the following?
- Any person who offers securities for sale
- Any person who has issued or proposes to issue any security (Correct answer)
- Only corporations that issue common stock
- Only entities registered with the SEC
Correct answer: Any person who has issued or proposes to issue any security
Under the USA, an issuer is broadly defined as any person who has issued or proposes to issue any security.
Question 5: Who is the state official responsible for administering the Uniform Securities Act in a state?
- The Secretary of State
- The Attorney General
- The Administrator (Correct answer)
- The State Treasurer
Correct answer: The Administrator
The Administrator is the state official or agency designated to administer and enforce the provisions of the USA.
Question 6: Under the USA, how long is an initial registration effective once granted?
- Six months from the date of grant
- Until December 31 of the year granted, unless renewed (Correct answer)
- Two years from the date of grant
- Indefinitely unless revoked
Correct answer: Until December 31 of the year granted, unless renewed
Registrations under the USA are effective until December 31 of the calendar year in which they are granted, after which they must be renewed.
Series 63 – Uniform Securities Agent State Law Exam Definitions and Registration Requirements 1
Under the Uniform Securities Act, which of the following is NOT considered a security?