NASAA Series 63Regulation of Broker-Dealers and AgentsEasy
A broker-dealer's registration application in State A becomes effective on July 1st. According to the Uniform Securities Act, when will this registration typically expire if not renewed?
- AOne year from the effective date, July 1st of the following year.
- BDecember 31st of the following year.
- CDecember 31st of the current year.
- DTwo years from the effective date, July 1st two years later.
Show answer & explanationAnswer & explanation
Correct answer: C. 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. Registration is not effective for a full year from the effective date; it aligns with the calendar year.
- B. Registrations expire in the current year, not the following year, even if effective late in the year.
- D. Registration is annual, not biennial.
Annual Registration Expiration
Under the Uniform Securities Act, all registrations for broker-dealers, agents, investment advisers, and investment adviser representatives expire annually on December 31st.
- Applies to all registrants.
- Fixed expiration date: December 31st.
- Renewal is required to continue registration past this date.
Memory trick: Registration is like a calendar year, always ending on the last day of December.