NASAA Series 63Regulation of Securities and IssuersEasy
An issuer plans to sell securities in a state at the same time it registers those securities with the SEC under the Securities Act of 1933. Which method of state registration would this issuer most likely use?
- ARegistration by qualification
- BRegistration by coordination
- CRegistration by notification
- DRegistration by filing
Show answer & explanationAnswer & explanation
Correct answer: B. Registration by coordination
Registration by coordination is used when an issuer is simultaneously filing a registration statement with the SEC under the Securities Act of 1933. The state registration becomes effective at the same time as the federal registration, provided all conditions are met.
Why the other options are wrong
- A. Qualification is used when there is no simultaneous federal registration.
- C. Notification is an older term not used under the current Uniform Securities Act.
- D. Registration by filing is a simplified method for seasoned issuers, not tied to a federal filing.
Registration by Coordination
A method of state securities registration used when an issuer files simultaneously at the federal (SEC) and state level.
- Requires a concurrent SEC registration statement
- Becomes effective at the same time as the federal registration
- Must have been on file with the Administrator for a specified waiting period with no stop order
Memory trick: Coordination = Co-filing with the SEC at the same time