NASAA Series 63Regulation of Securities and IssuersMedium
A company has been in continuous operation for the past 5 years, has never defaulted on any obligation, and wants to use the simplest state registration method available under the Uniform Securities Act. Which method is most appropriate, assuming the company meets all financial and operational thresholds?
- AAn exemption from registration
- BRegistration by coordination
- CRegistration by filing
- DRegistration by qualification
Show answer & explanationAnswer & explanation
Correct answer: C. Registration by filing
Registration by filing is a streamlined method available to seasoned issuers that meet specific criteria, such as continuous operation for a set period and no history of default. It typically becomes effective automatically a set number of business days after filing.
Why the other options are wrong
- A. An exemption is not indicated since the company is choosing a registration method.
- B. Coordination requires a simultaneous federal filing, not mentioned here.
- D. Qualification is more burdensome and used when filing does not qualify.
Registration by Filing
A simplified state registration method for issuers that meet minimum operating history and financial soundness requirements.
- Available to seasoned issuers with continuous operations
- Becomes effective automatically after a short waiting period absent objection
- Reduces the administrative burden compared to qualification
Memory trick: Filing is for the financially fit and long-standing firm