NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
An agent, registered in State A, has a client who moves from State A to State B. The client requests to continue receiving services from the agent. Under the Uniform Securities Act, how long can the agent continue to service this client without registering in State B, assuming the agent promptly files an application for registration in State B?
- A30 days
- B60 days
- C90 days
- D120 days
Show answer & explanationAnswer & explanation
Correct answer: A. 30 days
The Uniform Securities Act provides a temporary exemption for agents to continue servicing existing clients who move to a new state. This exemption is typically for 30 days, provided the agent promptly files an application for registration in the new state.
Why the other options are wrong
- B. 60 days is not the standard temporary period for this scenario.
- C. 90 days is not the standard temporary period for this scenario.
- D. 120 days is not the standard temporary period for this scenario.
Agent Temporary Registration (Moved Client)
An agent can temporarily service an existing client who moves to a new state for a limited period (typically 30 days) while their registration application in that new state is pending.
- Applies to existing clients only.
- Agent must be registered in the original state.
- Registration application must be promptly filed in the new state.
- Duration is typically 30 days.
Memory trick: Thirty days to move and file, keep serving clients with a smile.