Series 63

Which organization regulates broker-dealers?

• AFederal Reserve Board (FRB)
• BFINRA
• CMSRB
• DState insurance commissioners

Blue sky laws are:

• AFederal securities regulations
• BState securities regulations
• CInternational securities regulations
• DSelf-regulatory organization rules

The Securities Act of 1933 primarily regulates:

• ASecondary market trading
• BNew issues of securities (primary market)
• CInvestment advisers
• DBroker-dealer conduct

Which act created the Securities and Exchange Commission (SEC)?

• ASecurities Act of 1933
• BSecurities Exchange Act of 1934
• CInvestment Company Act of 1940
• DInvestment Advisers Act of 1940

Under the Uniform Securities Act, an "agent" is:

• AAny employee of a broker-dealer
• BA person who represents a broker-dealer in securities transactions
• CThe owner of a broker-dealer
• DA compliance officer

Under the Uniform Securities Act, what is the difference between an "exclusion" and an "exemption"?

• AThey mean the same thing and can be used interchangeably
• BAn exclusion means the item does not meet the definition; an exemption means it meets the…
• CAn exclusion applies only to securities; an exemption applies only to persons
• DAn exemption is permanent; an exclusion is temporary

State securities laws are commonly referred to as:

• ARed Flag Laws
• BBlue Sky Laws
• CGreen Light Laws
• DFederal Covered Laws

Which of the following is NOT a power of the state Administrator under the Uniform Securities Act?

• AIssue rules and orders
• BConduct investigations
• CSuspend or revoke registrations
• DImpose criminal penalties directly

Under the Uniform Securities Act, which of the following can be an "agent"?

• AA corporation
• BA partnership
• CAn individual
• DA limited liability company

An attorney provides investment advice to clients as part of her legal practice and does not charge separately for the investment advice. Under the USA, is she an investment adviser?

• AYes, because she provides advice about securities
• BYes, because she receives compensation for her legal services
• CNo, because the advice is solely incidental to her profession as an attorney
• DNo, because attorneys are completely exempt from all securities laws

A director of a broker-dealer firm spends all of her time on corporate governance and never interacts with customers or effects securities transactions. Is she required to register as an agent?

• AYes, all directors must register as agents
• BYes, because she receives compensation from the broker-dealer
• CNo, because she does not effect securities transactions
• DNo, because directors are always excluded from registration