Series 63 UPDATED

Question 1

Broker Dealer must register when:

Answer 1

1. Office in a state
2. 1 resident retail client in state

Effective noon 30 days post filing
Renew every Dec 31st

Question 2

Agent (rep of BD) must register in state where buisness:

Answer 2

1. Originates
2. Directs
3. Receive & Accepts
   (retail & institutional)

Question 3

Exempt persons from registering as Agent:

Answer 3

1. Administrative staff
2. Employees representing the issuer of:
   - Exempt Securities
   - Exempt Transactions
   - Sales to existing employees w/o commission

Question 4

Agent registers through form:

Answer 4

U-4

Effective noon 30 days post file
Renewal: Dec 31
Termination: Form U-5

Question 5

Investment Advisors are

Answer 5

Firms that provide:
- Advice
- Business
- Compensation

Form ADV

Question 6

Investment Advisors register at state level when:

Answer 6

1. Office in state
2. Less than 5 retail clients in state

Question 7

Investment Advisors register with SEC when:

Answer 7

1. More than $100mm AUM
2. 15 or more states
3. Advise investment companies

Question 8

Investment Advisor Representatives register at the:

Answer 8

State level
Form U-4
30 days post file
renew Dec 31st

Question 9

State Registered IA, IARs must register when:

Answer 9

1. Place of business
2. Less than 5 retail clients

Question 10

Federal Covered IA, IARs must register:

Answer 10

1. Place of business

Question 11

Not Securities

Answer 11

• Commodities
• Currencies
• Collectibles
• Personal Residence
• Retirement Plan Interest
• Fixed Annuity

Question 12

Registration of Securities

Answer 12

must register in state unless exempt transaction or security

1. Coordination (multiple states)
2. Qualification (individual state)
3. Notice Filing (Federal Covered Securities, ex: open/closed end funds)

Question 13

Exempt Securities (avoid registration)

Answer 13

• US & Foreign governments
• Munis
• Banks
• Insurance Companies
• Public Utilities
• Non for Profits
• Commercial Paper
• Employee Benefit Plans
• Federal-Covered Securities

Question 14

Exempt Transactions (avoid registration)

Answer 14

• Unsolicited
• Private Placement
• Existing Security Holders
• Underwriters
• Fiduciaries (trustee of bankruptcy)
• Institutional

Question 15

Federal Covered Securities (state exempt)

Answer 15

• Nationally Listed Securities
• Investment Company Securities (mutual funds, ETFs, closed-end)
• Reg D Private Placement
• US Government Securities
• Out-of-State Munis

Question 16

Jurisdiction (of Administrator)

Answer 16

1. Originates state
2. Directed state
3. Accepted state

Question 17

Statutory Disqualification

Answer 17

Within 10 years

1. Securities related Misdemeanor
2. Any Felony

Question 18

Civil Liabilities

Answer 18

Investor files lawsuit

Penalty: make whole

Statue Limitations earlier of: 3yrs of violation, 2yrs of discovery

Question 19

Criminal Liabilities

Answer 19

State Prosecutor files lawsuit

Penalty: $5k or 3yrs in Jail

Statue Limitations: 5yrs from violation

Question 20

NOT account fees:

Answer 20

• Commissions
• Markups/downs
• Advisory fees

Question 21

Testimonials:

Answer 21

current client experience

Question 22

Endorsements:

Answer 22

not current client experience

Question 23

Entanglement

Answer 23

INVLOVED in preparation of content

Question 24

Adoption:

Answer 24

APPROVES/ENDORCES content