NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
A broker-dealer's registration in a state becomes effective on October 1st. Under the Uniform Securities Act, when will this registration typically expire?
- AThe last day of the following calendar year, so December 31st of the next year.
- BThe last day of the current calendar year, so December 31st.
- CIt does not expire, but requires annual renewal.
- DOne year from the effective date, so October 1st of the following year.
Show answer & explanationAnswer & explanation
Correct answer: B. The last day of the current calendar year, so December 31st.
Registrations for broker-dealers, agents, investment advisers, and investment adviser representatives under the Uniform Securities Act typically expire on December 31st of the year in which they become effective, regardless of the effective date, and must be renewed annually.
Why the other options are wrong
- A. This would grant more than a year of initial registration, which is not standard under the USA.
- C. While it requires annual renewal, it does have an expiration date.
- D. Registrations are not typically valid for a full year from their effective date under the USA; they align with the calendar year.
Annual Registration Expiration
Registrations for broker-dealers, agents, investment advisers, and investment adviser representatives under the Uniform Securities Act expire on December 31st of the current calendar year and must be renewed annually.
- Applies to all registrants (BDs, Agents, IAs, IARs).
- Expiration date is always December 31st.
- Renewal process begins before December 31st for the next year.
Memory trick: All Registrations End Dec 31st