File Info
| Exam | Uniform Securities State Law Examination |
| Number | Series 63 |
| File Name | FINRA.Series 63.TestInside.2018-09-07.138q.tqb |
| Size | 704 KB |
| Posted | Sep 07, 2018 |
| Download | FINRA.Series 63.TestInside.2018-09-07.138q.tqb |
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Demo Questions
Question 1
“Federal covered securities” were defined and exempted from state registration requirements by the:
- National Securities Markets Improvement Act of 1996 (NSMIA.)
- Gramm-Leach-Bliley Act of 1999 (GLBA.)
- Uniform Securities Act (USA.)
- National Conference of Commissioners on Uniform State Laws (NCCUSL.)
Correct answer: 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. 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.
Question 2
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.
- Statements I and III are true.
- Statements II and III are true.
- Only Statement I is true.
- Only Statement IV is true.
Correct answer: 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. 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.
Question 3
Most individual state securities laws today are based on:
- the Uniform Securities Act of 1956.
- the Uniform Securities Act of 2002.
- the National Securities Markets Improvement Act of 1996.
- the Gramm-Leach-Bliley Act of 1999.
Correct answer: 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. 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.
