NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
A broker-dealer's initial registration application in a state became effective on October 1st. Under the Uniform Securities Act, when will this registration expire?
- ADecember 31st of the following year.
- BDecember 31st of the current year.
- COne year from the effective date.
- DOctober 1st of the following year.
Show answer & explanationAnswer & explanation
Correct answer: B. December 31st of the current year.
Under the Uniform Securities Act, all registrations for broker-dealers, agents, investment advisers, and investment adviser representatives expire annually on December 31st, regardless of the effective date.
Why the other options are wrong
- A. This would be incorrect as it extends beyond the current year's December 31st.
- C. Registration is not for a full year from the effective date; it's prorated to December 31st.
- D. Registration does not expire on the anniversary of the effective date.
Annual Registration Expiration
Registrations for broker-dealers, agents, investment advisers, and investment adviser representatives under the Uniform Securities Act expire annually on December 31st.
- Applies to all registrants (BDs, agents, IAs, IARs).
- Expiration date is always December 31st.
- Renewal fees are due at or before expiration.
- Initial registration is prorated to December 31st.
Memory trick: December 31st, end of the year, registration's due, have no fear!