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 contacts the agent from State B and requests a transaction. Under the Uniform Securities Act, for how long can the agent continue to effect transactions for this client without registering in State B, provided the agent promptly files an application for registration in State B?
- A90 days
- B10 days
- C30 days
- D60 days
Show answer & explanationAnswer & explanation
Correct answer: C. 30 days
The Uniform Securities Act (USA) provides a temporary registration provision for agents whose clients move to a new state. This allows the agent to continue servicing the client for a limited period while the agent applies for registration in the new state.
Why the other options are wrong
- A. 90 days is incorrect; this period is not specified for temporary agent registration in this context.
- B. 10 days is incorrect; this period is typically associated with summary orders or certain notifications.
- D. 60 days is incorrect; this period is not specified for temporary agent registration in this context.
Agent Temporary Registration (Moved Client)
An agent can continue to effect transactions for an existing client who moves to a new state for a limited period (30 days) while applying for registration in the new state.
- Applies when an existing client moves to a new state.
- Agent must promptly file for registration in the new state.
- Allows continued service for 30 days.
Memory trick: Moving clients need 30 days for their agent to 'pack' new registration.