SERIES 63 MOST TESTED QUESTIONS
WITH CORRECT ANSWERS
Which of the following would be required to register as an agent under the Uniform Securities
Act? - ✔✔A trader who is authorized to handle customer orders
An individual who makes cold calls to pre-qualify prospects and lets a principal in the firm
handle all customer trades
Investment advisers who manage investment portfolios that total less than $100 million must
register with - ✔✔state
When submitting an application for registration as a broker-dealer, which of the following must
be disclosed - ✔✔1. form of business organization
2. any felonies or certain misdemeanors on the records of partners or officers
3. business history of the principals of the firm
4. financial information on the firm
Under the Uniform Securities Act, an employee of a licensed broker-dealer firm is allowed to
sell securities as an unregistered agent when - ✔✔under no circumstances
An individual employed by a federal covered adviser would be required to become registered as
an IAR in the state if - ✔✔the only clients receiving the individual's advice are large pension
plans organized for employees of municipalities located in the state where that individual
maintains an office
The Uniform Securities Act defines an investment adviser and specifies the conditions under
which registration with the state is required. There are, however, cases where an exemption from
registration is offered. For example, it is NOT necessary for an investment adviser to register
when it - ✔✔has no place of business in the state and advises only savings and loan
associations
, Under the Uniform Securities Act, a broker-dealer is defined as any person who - ✔✔is in the
business of effecting securities transactions for its own account or for the accounts of others
Peter Smith, a prominent securities lawyer living in Connecticut, conducts his securities law
practice full time in New York state. He must register as an investment adviser in New York
state if - ✔✔Smith's clients, none of whom are residents of New York, receive investment
advice as an integral part of Smith's legal services
Under the NSMIA, the term "federal covered adviser" includes a person - ✔✔registered with
the SEC under the Investment Advisers Act of 1940
excluded from the definition of an investment adviser under the Investment Advisers Act of 1940
Which of the following statements concerning the registration of an agent for a broker-dealer is
TRUE? - ✔✔Registrations expire on December 31 each year unless renewed.
Under the Uniform Securities Act (USA), a person is best defined as a(n) - ✔✔individual or
entity considered able to enter into an enforceable contract
An individual may NOT act as an agent for more than one broker-dealer - ✔✔unless the
Administrator, by rule or order, authorizes such employment
Under the Uniform Securities Act, a person whose business model is selling reports on a
subscription basis concerning specific securities to investors based on their individual objectives
will be defined as - ✔✔an investment adviser
An investment adviser need not register in a state if it has - ✔✔no place of business in the
state and only advises thirty-three insurance companies located in the state
Under the Uniform Securities Act, when must a consent to service of process be filed with the
Administrator? - ✔✔With the original application only
WITH CORRECT ANSWERS
Which of the following would be required to register as an agent under the Uniform Securities
Act? - ✔✔A trader who is authorized to handle customer orders
An individual who makes cold calls to pre-qualify prospects and lets a principal in the firm
handle all customer trades
Investment advisers who manage investment portfolios that total less than $100 million must
register with - ✔✔state
When submitting an application for registration as a broker-dealer, which of the following must
be disclosed - ✔✔1. form of business organization
2. any felonies or certain misdemeanors on the records of partners or officers
3. business history of the principals of the firm
4. financial information on the firm
Under the Uniform Securities Act, an employee of a licensed broker-dealer firm is allowed to
sell securities as an unregistered agent when - ✔✔under no circumstances
An individual employed by a federal covered adviser would be required to become registered as
an IAR in the state if - ✔✔the only clients receiving the individual's advice are large pension
plans organized for employees of municipalities located in the state where that individual
maintains an office
The Uniform Securities Act defines an investment adviser and specifies the conditions under
which registration with the state is required. There are, however, cases where an exemption from
registration is offered. For example, it is NOT necessary for an investment adviser to register
when it - ✔✔has no place of business in the state and advises only savings and loan
associations
, Under the Uniform Securities Act, a broker-dealer is defined as any person who - ✔✔is in the
business of effecting securities transactions for its own account or for the accounts of others
Peter Smith, a prominent securities lawyer living in Connecticut, conducts his securities law
practice full time in New York state. He must register as an investment adviser in New York
state if - ✔✔Smith's clients, none of whom are residents of New York, receive investment
advice as an integral part of Smith's legal services
Under the NSMIA, the term "federal covered adviser" includes a person - ✔✔registered with
the SEC under the Investment Advisers Act of 1940
excluded from the definition of an investment adviser under the Investment Advisers Act of 1940
Which of the following statements concerning the registration of an agent for a broker-dealer is
TRUE? - ✔✔Registrations expire on December 31 each year unless renewed.
Under the Uniform Securities Act (USA), a person is best defined as a(n) - ✔✔individual or
entity considered able to enter into an enforceable contract
An individual may NOT act as an agent for more than one broker-dealer - ✔✔unless the
Administrator, by rule or order, authorizes such employment
Under the Uniform Securities Act, a person whose business model is selling reports on a
subscription basis concerning specific securities to investors based on their individual objectives
will be defined as - ✔✔an investment adviser
An investment adviser need not register in a state if it has - ✔✔no place of business in the
state and only advises thirty-three insurance companies located in the state
Under the Uniform Securities Act, when must a consent to service of process be filed with the
Administrator? - ✔✔With the original application only
