NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
A broker-dealer files a complete application for registration in a state on March 1. The Administrator takes no action on the application. Absent any denial, suspension, or request for additional information, when does the registration become effective under the Uniform Securities Act?
- AAt noon on the 60th day after the application is filed
- BAt noon on the 30th day after the application is filed
- COnly after the Administrator issues an affirmative order of approval
- DImmediately upon filing on March 1
Show answer & explanationAnswer & explanation
Correct answer: B. At noon on the 30th day after the application is filed
Under the USA, if no denial or stop order is issued, registration becomes effective at noon on the 30th day after the application was filed (or after a later-filed amendment), absent a shorter period specified by the Administrator.
Why the other options are wrong
- A. 60 days is not the standard timeframe used by the USA for BD/agent registration.
- C. An affirmative order is not required; effectiveness can occur automatically by passage of time.
- D. Registration is not automatic on the filing date itself.
Effective Date of Registration
Absent denial or a stop order, a broker-dealer or agent registration becomes effective automatically at noon on the 30th day after a complete application is filed.
- 30-day default period runs from filing of complete application
- Administrator may shorten this by rule or order
- Applies similarly to agents, investment advisers, and IARs
Memory trick: Thirty days, noon, no news is good news.