NASAA Series 63Regulation of Broker-Dealers and AgentsEasy
As part of an application for registration as a broker-dealer in a state, the applicant must file a document appointing the Administrator as the applicant's attorney to receive service of legal process in any noncontractual proceeding arising under the Act. This required document is known as the:
- AStatement of Financial Condition
- BConsent to Service of Process
- CFidelity Bond Certification
- DUniform Application for Broker-Dealer Registration (Form BD)
Show answer & explanationAnswer & explanation
Correct answer: B. Consent to Service of Process
Every applicant for registration as a broker-dealer, agent, investment adviser, or IA representative must file a Consent to Service of Process, appointing the Administrator as agent to accept service in any noncontractual proceeding under the Act.
Why the other options are wrong
- A. Incorrect — this relates to financial responsibility requirements, not legal process.
- C. Incorrect — fidelity bonds relate to financial protection, not legal notice.
- D. Incorrect — Form BD is the general registration application, not the service-of-process document itself.
Consent to Service of Process
A required registration filing appointing the state Administrator as the registrant's agent for receiving legal papers in proceedings under the Act.
- Required for BDs, agents, IAs, and IA reps
- Filed once and remains in effect perpetually for actions arising while registered
- Facilitates state jurisdiction over out-of-state registrants
Memory trick: Consent Connects You to the Court