TEAS Science: Scientific Reasoning (Quiz 2) Welcome to your Series 63 Practice Quizzes. Note: We designed four (4) parts of practice quizzes for each Domain. each quiz part has 25 questions. Domain 4 (part 1): Regulations of Agents Broker-Dealers. (25 questions) Please click NEXTÂ to start your Free Series 63 Practice Quizzes right away. Best of Luck! 1. Series 63, Regulations of Agents Broker-Dealers,Series 63 A Canadian broker-dealer is registered in the province of Alberta. The firm has clients who vacation in Arizona, New Mexico, and Texas, and they would like to continue to do business with them while on their holidays. Under the Uniform Securities Act, A) this would only be permitted if the trades were executed through an affiliated domestic broker-dealer who is licensed in those states. B) this is permissible only if the broker-dealer is registered with the SEC. C) this is permissible if the broker-dealer is properly registered in Alberta, deals only with existing clients, and registers in each of the states. D) the broker-dealer may only accept unsolicited orders from their existing clients while they are vacationing in the U.S. None 2. Series 63, Regulations of Agents Broker-Dealers,Series 63 Charles Horse is the CEO of Farrier and Nail, a new broker-dealer applying for registration in a number of states. In completing the application, which of the following events in the CEO's life must be disclosed? A) Any charge, conviction, or guilty plea to a misdemeanor involving investments or an investment-related business or bribery, forgery, extortion, or similar offenses B) Any charge, conviction, or guilty plea to a misdemeanor involving investments or an investment-related business or bribery, forgery, extortion, or similar offenses, limited to the past 10 years C) Any charge, conviction, or guilty plea to a misdemeanor involving failure to pay child support or alimony or similar domestic offenses D) Financial condition and history including a recent credit report None 3. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, who automatically becomes registered as an agent when a broker-dealer firm's registration becomes effective? A) Any individual who has contributed capital to fund the organization B) Any partner, officer, or director of the firm who is active as an agent in the firm's securities business C) All individuals for whom an agent's application has been filed D) Any individual who directly handles securities None 4. Series 63, Regulations of Agents Broker-Dealers,Series 63 The registration of a broker-dealer in this state would automatically register as an agent A) an investment adviser representative of the broker-dealer. B) an agent who sits on the board of directors of the broker-dealer. C) a secretary who has been employed by the firm for the past five years. D) all employees of the broker-dealer. None 5. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, an agent's license is effective for A) 20 years. B) 18 months, of which the first 6 months is a probationary period. C) 1 year initially and then renewing as of the following December 31. D) the time remaining until December 31 of that year, at which time it must be renewed. None 6. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, the registration requirements for agents would never include A) a consent to service of process. B) an examination. C) minimum capital. D) surety bonding. None 7. Series 63, Regulations of Agents Broker-Dealers,Series 63 The Administrator may require an applicant for registration as an agent to do all of the following except A) submit fingerprints. B) place an advertisement in one or more newspapers circulated in the state. C) pay a registration fee. D) pass a qualification examination. None 8. Series 63, Regulations of Agents Broker-Dealers,Series 63 Adrian sells life insurance as an independent licensed insurance producer for several large insurance companies. Selling variable life insurance also requires registration as an agent with a broker-dealer handling that product. Supervisory responsibility over Adrian's sales of variable life is that of A) the insurance company underwriting the variable life insurance policy. B) the broker-dealer with whom Adrian is registered. C) the state insurance commissioner. D) the Administrator of the state where the policy is sold. None 9. Series 63, Regulations of Agents Broker-Dealers,Series 63 An agent's registration is considered effective A) once the licensing fee has been paid. B) when approval has been granted by the Administrator. C) when approval has been granted by FINRA. D) upon passing the Series 63 Uniform Securities Agent State Law exam. None 10. Series 63, Regulations of Agents Broker-Dealers,Series 63 Registration with the Administrator as a broker-dealer generally requires the filing of A) Form U4. B) Form BD. C) Form Broker-Dealer. D) Form ADV. None 11. Series 63, Regulations of Agents Broker-Dealers,Series 63 The Administrator wishes to examine the books of a broker-dealer registered in her state. She may do so A) anytime she wishes. B) only after an appointment has been made with the broker-dealer. C) no more frequently than on a quarterly basis. D) only if the broker-dealer has a place of business in the state. None 12. Series 63, Regulations of Agents Broker-Dealers,Series 63 High Performance Securities (HPS) is a broker-dealer registered in States A, B, and E. State E is the location of the HPS principal office. If a customer of HPS files a complaint with the Administrator of State A, A) the State A Administrator has no jurisdiction and must forward the complaint to the State E Administrator. B) the State A Administrator can pay a surprise visit to the principal office in State E during normal business hours and demand to see the records relevant to the customer's complaint. C) the State A Administrator must make an appointment with the designated HPS supervisor and schedule the investigation at a time convenient for both. D) the State E Administrator will use the consent to service of process filed by HPS to act as the attorney for HPS. None 13. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, a person who has passed the appropriate NASAA examination but whose license has not yet been issued can participate in A) giving a seminar on the benefits of whole life insurance versus term insurance. B) prospecting for new clients by mail. C) prospecting for new clients in person. D) accepting unsolicited orders. None 14. Series 63, Regulations of Agents Broker-Dealers,Series 63 On the basis of information gathered from reliable sources, an Administrator has reason to believe that a broker-dealer located in the state is engaging in practices that might be a violation of the Uniform Securities Act. As a result, the Administrator assembles a task force to conduct a surprise audit of the firm's operations. In doing so, the Administrator's task force would be able to enter the broker-dealer's premises A) at any time during regular business hours without prior notice. B) upon 15 days' notice. C) upon 1 day's notice. D) upon 1 hour's notice. None 15. Series 63, Regulations of Agents Broker-Dealers,Series 63 Pelf Securities and Investments, Inc., (PSII) has been in business as a registered broker-dealer in State Z since 1932. During that time, control of the company was in the hands of the descendants of the founder. With no one in the current generation interested in continuing the firm's legacy, the board of directors votes to withdraw PSII's registration. Which of the following statements is true? A) The Administrator may bring an action against PSII for a period of 2 years after the effective date of the withdrawal. B) The withdrawal from registration will normally take place on the 60th day after filing. C) Once the application for withdrawal is filed, any pending actions against the firm are canceled. D) The withdrawal from registration will normally take place on the 30th day after filing. None 16. Series 63, Regulations of Agents Broker-Dealers,Series 63 Jamal is registered as an agent with Dearborn Distinctive Investments (DDI), a broker-dealer registered with the SEC and a number of states. Due to some poor management mishaps, the SEC revokes DDI's registration as a broker-dealer. How does this affect Jamal's registration as an agent? A) His registration is not affected. B) His registration is revoked. C) His registration is no longer active. D) His registration remains active as long as he registers with an active broker-dealer within 30 days. None 17. Series 63, Regulations of Agents Broker-Dealers,Series 63 USATrade Securities, a FINRA member broker-dealer, is registered in 10 Midwestern states. Regarding financial requirements, USATrade must meet those of A) the state with the most stringent financial requirements. B) the SEC. C) FINRA. D) the state in which the principal office of the member is located. None 18. Series 63, Regulations of Agents Broker-Dealers,Series 63 When filing the consent to service of process, which of the following is true? A) It is supplied with the initial registration and remains on file permanently. B) It must be filed annually on the dates specified by the Administrator. C) It expires simultaneously with the registration on December 31. D) It is not required of investment adviser representatives, only investment advisers. None 19. Series 63, Regulations of Agents Broker-Dealers,Series 63 A control affiliate of a broker-dealer applying for state registration could be the cause of a statutory disqualification if its Form BD disclosed that the control affiliate was A) indicted for committing a securities-related misdemeanor two years ago. B) charged with committing a securities-related felony two years ago. C) convicted of a non-securities-related felony eight years ago. D) convicted of a non-securities-related misdemeanor eight years ago. None 20. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, which of the following statements is true regarding registration of a broker-dealer if the application has not been amended? A) Unless specified earlier, registration becomes effective no later than 90 days after the application is filed. B) Unless specified earlier, registration becomes effective no sooner than 15 days after the application is filed. C) Unless specified earlier by the Administrator, the registration becomes effective no later than noon on the 30th day after application. D) Unless specified earlier by the Administrator, the registration becomes effective at noon on the 60th day after application. None 21. Series 63, Regulations of Agents Broker-Dealers,Series 63 Pinnacle Asset Management (PAM) is an SEC-registered broker-dealer. PAM is also registered in more than 25 states. The net capital rule of the SEC requires PAM's net capital to be at least $50,000, and at its most recent calculation, it had net capital of $58,000. One of the states where PAM is registered has a bonding requirement of $60,000. To be in compliance, A) PAM would not be required to post a surety bond. B) PAM would need to post a surety bond of $63,000. C) PAM would need to post a surety bond of $50,000. D) PAM would need to post a surety bond of $60,000. None 22. Series 63, Regulations of Agents Broker-Dealers,Series 63 Parlous Professional Investors (PPI) is applying for registration as a broker-dealer in State X. Which of the following would not be included in the registrant's application? A) A description of PPI's form of business structure B) Fingerprint cards for each of PPI's officers who will be registered as agents C) A disclosure if the applicant has ever been the subject of any adjudications by the SEC or any securities SRO D) The location of PPI's principal office None 23. Series 63, Regulations of Agents Broker-Dealers,Series 63 Under the Uniform Securities Act, when must a consent to service of process be filed with the Administrator? A) With the original application and renewal B) With the original application only C) Only when requested by the Administrator D) When a case is pending None 24. Series 63, Regulations of Agents Broker-Dealers,Series 63 Gamma Delta LLC (GDL) is a broker-dealer registered with the Administrator. The nature of Gamma Delta's business is such that the Administrator requires a $30,000 surety bond. In lieu of the bond, GDL could A) submit a personal guarantee from the LLC's members. B) deposit $30,000 of nonmarketable securities. C) supply a surety bond in the amount of $30,000. D) deposit $30,000 cash. None 25. Series 63, Regulations of Agents Broker-Dealers,Series 63 Which of the following can be substituted for a surety bond? A) Real estate B) Cash or commodities C) Cash or marketable securities D) Commodities, cash, or securities None 1 out of 25 Time is Up! Time's up
