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FINRA Series_63 Exam Syllabus Topics:

SectionWeightObjectives
Regulations of Investment Adviser Representatives5%- Exclusions and exemptions
- Definition and activities requiring registration
- Registration and post-registration duties
Regulations of Broker-Dealers12%- Registration and post-registration requirements
- Definition and legal status
- Supervision and compliance obligations
- Exclusions and exemptions from registration
Administrative Provisions and Remedies15%- Civil and criminal liabilities
- Judicial review and appeals
- Powers of state securities administrators
- Investigations, subpoenas, and orders
Regulations of Securities and Issuers10%- Exempt securities and exempt transactions
- Definition of securities
- Disclosure and anti-fraud requirements
- Registration methods: coordination, qualification, filing
Ethical Practices and Fiduciary Obligations40%- Advertising and communication rules
- Conflicts of interest and compensation
- Handling of customer funds and securities
- Customer suitability and disclosure
- Anti-fraud provisions and misrepresentation
- Prohibited business practices
Regulations of Investment Advisers5%- Recordkeeping and reporting rules
- Registration and exemptions
- Definition under Uniform Securities Act
Regulations of Agents of Broker-Dealers13%- Exemptions from registration
- Definition and scope of activities
- Registration procedures and Form U4
- Termination and notice requirements

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

Which of the following entities must sign a "consent to service of process," thereby allowing the
Administrator to receive legal documents that are meant to be served to the entity in place of that entity?
I. agents
II. investment advisers
III. investment adviser representatives
IV. broker-dealers

  • A. I and IV only
  • B. I, II, III, and IV
  • C. II and III only
  • D. II and IV only
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

Under the Uniform Securities Act (USA), the term "investment adviser" does not apply to
I. an investment advisory firm owned and operated by a sole proprietor.
II. a bank or savings institution.
III. an investment adviser representative.
IV. a broker-dealer or its agents if the advice is incidental to the business although there is a nominal
charge for any specific investment advice given.

  • A. II, III and IV only.
  • B. I, II, III, or IV.
  • C. II and III only.
  • D. I, II, and III only.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

Which of the following statements about agents is (are) false?

  • A. An agent must demonstrate a specific minimum level of financial stability for his registration application
    to be accepted.
  • B. When an agent has a change of address, both he and his broker-dealer affiliate must inform the
    Administrator.
  • C. All of the above are false statements.
  • D. If an agent files for bankruptcy, the Administrator may elect to terminate that agent's registration if the
    Administrator believes it is "in the public interest" to do so.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

Constance is an investment adviser representative. She told one of her clients that he should put at least
1 5% of his investment monies in a U.S. government bond mutual fund.
She explained that she believed that he required this percentage to meet his liquidity needs, and U.S.
government bond funds are risk-free. A few months later, the client needed to sell some of his fund shares
in order to pay some medical bills and was surprised to discover that he lost money on the sale because
the net asset value of the fund had dropped. Was Constance guilty of any securities violations?

  • A. Yes. Constance is guilty of fraud. She misled the client into thinking he couldn't lose any money if he
    invested the money in a U.S. government bond mutual fund.
  • B. It depends. If Constance realized that the client could lose money in a U.S. government bond fund,
    then she is guilty of fraud, but if she did not herself realize that, then she is merely misinformed.
  • C. No. U.S. government bonds are often referred to as risk-free investments, so Constance made no
    misstatement of fact in telling her client this.
  • D. Yes. Constance should never recommend that a client invest such a high percentage of his investment
    monies in a U.S. government bond mutual fund.
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Correct Answer: A  🗳️

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Question #5

After passing the necessary exams, you must submit which of the following to the state Administrator
when applying for registration as an agent?

  • A. Form ADV
  • B. proof that you meet the state's minimum net capital requirement
  • C. U-4
  • D. a recent photograph of yourself
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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