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FINRA Series-63 Exam Questions
Uniform Securities State Lawination (Page 8 )

Updated On: 24-Feb-2026
Page 8 of 52
PDF with 251 Questions

Which of the following entities must sign a “consent to service of process,” thereby allowing the Administrator to receive legal documents that are meant to be served to the entity in place of that entity?

I) agents
II) investment advisers
III) investment adviser representatives
IV) broker-dealers

  1. I and IV only
  2. II and III only
  3. II and IV only
  4. I, II, III, and IV

Answer(s): D

Explanation:

Agents, investment advisers, investment adviser representatives, and broker-dealers must all sign a consent to service of process, allowing the Administrator to receive legal documents in their stead. The consent to service of process must accompany the application for registration with the state or the documentation provided with a notice filing when permitted.



Which of the following would fall under the definition of “agent,” as defined by the Uniform Securities Act (USA)?

  1. Joe works as an administrative assistant for broker-dealer GetErDone, doing data entry, filing client forms that contain confidential information, and directing calls to registered representatives of the firm.
  2. Freedom broker-dealers executes the purchase and sale of securities for its customers.
  3. TrustUs Bank has a subsidiary operation that sells mutual funds to the public.
  4. None of the above would fall under the definition of “agent,” as defined by the Uniform Securities Act (USA.)

Answer(s): D

Explanation:

None of the selections describe an “agent,” as defined by the Uniform Securities Act (USA.)
Joe is not executing trades for clients of the broker-dealer, and clerical assistants are not classified as agents. Agents must be individuals, so a firm like Freedom broker-dealers would not be considered an agent. A bank is not an individual, and banks are even excluded from the definition of a broker-dealer.



The 2003 NASAA Model Rule requires that investment advisers that are not federal covered maintain their records for at least

  1. three years.
  2. five years.
  3. seven years.
  4. Investment advisers must maintain their records for as long as they remain registered with the state.

Answer(s): B

Explanation:

Investment advisers are required to maintain their records for at least five years.



Individual states are prohibited from requiring a broker-dealer or investment adviser to file financial reports more frequently than:

  1. once a year.
  2. twice a year.
  3. four times a year.
  4. twelve times a year.

Answer(s): C

Explanation:

Individual states are prohibited from requiring a broker-dealer or investment adviser to file financial reports more frequently than four times a year. Under the Securities and Exchange Act of 1934, individual states are prohibited from imposing more stringent requirements than those already required by the SEC, and the SEC requires quarterly reporting. Therefore, a state may not require that a broker-dealer or investment adviser file monthly reports with it.



A-2-Z Associates advertises itself as a full service brokerage firm that will buy and sell securities for its clients, as well as provide investment advice to them. Its brochure provides a variety of plans to which a client can subscribe. The basic plan is the cheapest and allows the client a maximum number of trades per month for a specified fee. Another, slightly more expensive, plan provides the client with the same maximum number of trades per month, but the client also receives a personalized quarterly review of his portfolio along with advice for restructuring his portfolio based on such factors as current market conditions and specific industry or company information. The most expensive plan is one in which the client is assigned to an individual portfolio manager, who will take total responsibility for the asset allocation of the client’s portfolio and will provide the client with monthly reports. Based on the services A-2-Z provides, it must register with the state as:

  1. a broker-dealer.
  2. an investment adviser.
  3. both a broker-dealer and an investment adviser.
  4. an investment adviser representative.

Answer(s): C

Explanation:

Based on the services A-2-Z provides, it must register with the state as both a broker-dealer and an investment adviser. It is receiving compensation as a broker-dealer for executing purchases and sales of securities for its clients under its basic plan, but it is receiving additional compensation for acting as an investment adviser under the two higher level plans.






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