NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
A broker-dealer's initial registration application in a state becomes effective on June 15. The state's Uniform Securities Act specifies that all registrations expire on December 31st of each year. What is the expiration date for this broker-dealer's initial registration?
- AJune 15 of the following year.
- BThe Administrator will determine a specific date after review.
- CDecember 31st of the following year.
- DDecember 31st of the current year.
Show answer & explanationAnswer & explanation
Correct answer: D. December 31st of the current year.
Under the Uniform Securities Act, registrations, regardless of when they become effective during the year, typically expire on December 31st of the current year. This means the initial registration period will be less than a full year.
Why the other options are wrong
- A. Registrations expire annually on a fixed date, not on the anniversary of the effective date.
- B. The expiration date is usually fixed by statute, not determined individually by the Administrator.
- C. This would grant an initial registration period longer than a single calendar year, which is not typical.
Annual Registration Expiration
Registrations for broker-dealers, agents, investment advisers, and investment adviser representatives typically expire annually on December 31st, regardless of their effective date.
- Fixed annual expiration date (usually Dec 31st).
- Applies to all types of registrants.
- Initial registration period may be less than one full year.
Memory trick: All registrations end the year on December 31st, like a calendar year's closing.