Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. FINRA
  5. Series-63

FINRA Series-63 Exam Questions
Uniform Securities State Lawination (Page 5 )

Updated On: 24-Feb-2026
Page 5 of 52
PDF with 251 Questions

Although an Administrator has broad powers, he or she cannot:

  1. issue subpoenas involving compulsory attendance.
  2. gather evidence.
  3. deliver a judicial injunction.
  4. formulate rules and orders.

Answer(s): C

Explanation:

An Administrator has broad powers, but he or she cannot deliver a judicial injunction because an Administrator does not have the authority bestowed on a court of law. The Administrator can issue subpoenas to require attendance, participate in evidence gathering, and formulate rules and orders.



“Federal covered securities” were defined and exempted from state registration requirements by the:

  1. National Securities Markets Improvement Act of 1996 (NSMI)
  2. Gramm-Leach-Bliley Act of 1999 (GLBA.)
  3. Uniform Securities Act (USA.)
  4. National Conference of Commissioners on Uniform State Laws (NCCUSL.)

Answer(s): A

Explanation:

The National Securities Markets Improvement Act of 1996 defined “federal covered securities” and exempted them from state registration requirements. The Gramm-Leach-Bliley Act focused on financial institutions and provided for their registration as broker-dealers under certain conditions. The National Conference of Commissioners on Uniform State Laws (NCCUSL) is the organization that drafted the Uniform Securities Act, which is not comprised of actual laws itself, but is, instead, just a guideline for each state to use when formulating its own securities laws.



Rich Quick is a broker-dealer licensed in the state of Massachusetts and has offices only within the state. Two of Rich Quick’s clients regularly vacation in Florida during the winter months, and Rich Quick executes trades for them when they call him from out-of-state.

Based on these facts,

I) Rich Quick needs to register as a broker-dealer in the state of Florida as well.
II) Rich Quick needs to register only as an agent in the state of Florida.
III) Rich Quick needs to establish an office in the state of Florida in order to transact business.
IV) Rich Quick need not register in Florida.

  1. Statements I and III are true.
  2. Statements II and III are true.
  3. Only Statement I is true.
  4. Only Statement IV is true.

Answer(s): D

Explanation:

Based on the facts provided, Rich Quick need not register in Florida since he has no offices in the state of Florida, and he is conducting business for existing clients who are merely vacationing in Florida and are not residents of the state.



Most individual state securities laws today are based on:

  1. the Uniform Securities Act of 1956.
  2. the Uniform Securities Act of 2002.
  3. the National Securities Markets Improvement Act of 1996.
  4. the Gramm-Leach-Bliley Act of 1999.

Answer(s): A

Explanation:

Most individual state securities laws continue to be based on the 1956 Uniform Securities Act. Although the Uniform Securities Act was revised in 1985, 1988, and 2002, none of these revisions have been widely incorporated by the individual states. The National Securities Markets Improvement Act of 1996 dealt mainly with the definition of federal covered securities and more efficient management of mutual funds. The focus of the Gramm-Leach-Bliley Act of 1999 was on financial institutions.



BigCash Broker-Dealers is registered in the state and is in the process of purchasing a smaller broker-dealer, Target Investments, as a subsidiary. Target Investments is also registered in the state.

After completing the purchase, what actions must BigCash take regarding registration of its new subsidiary?

  1. BigCash need do nothing since Target Investments was already duly registered with the state as a broker- dealer.
  2. BigCash must file a new application with the state to register its new subsidiary, but will be able to utilize the remainder of any annual filing fees that Target Investments had paid for the year.
  3. BigCash must file a new application with the state to register its new subsidiary and must also pay the annual filing fees required by the Administrator.
  4. BigCash will need to pay the annual filing fees required by the Administrator, but will not need to file a new registration application.

Answer(s): B

Explanation:

After completing the purchase, BigCash will have to file a new registration application for its new subsidiary, but BigCash can utilize the remainder of any annual filing fees that Target Investments had paid for the year. Although registration applications are never transferable, annual filing fees are.






Post your Comments and Discuss FINRA Series-63 exam dumps with other Community members:

Join the Series-63 Discussion