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FINRA Series_63 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: State Securities Acts and Related Rules | 60% | - Uniform Securities Act principles
|
| Topic 2: Regulation of Broker-Dealers and Agents | - Broker-Dealer definitions and requirements
| |
| Topic 3: Ethical Practices and Fiduciary Obligations | 40% | - Client-related rules
|
| Topic 4: Regulation of Investment Advisers and Representatives | - Investment Adviser Representatives
|
FINRA Uniform Securities Agent State Law Examination Sample Questions:
What criminal penalties are specified for "willful violations" of the Uniform Securities Act?
- A. up to 5 years in prison or a $10,000 fine, or both.
- B. license cancellation.
- C. license suspension.
- D. up to 3 years in prison or a $5,000 fine, or both.
Correct Answer: D 🗳️
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Ms. Muffet is employed by Spyder Broker-Dealers. Her job duties include providing price quotes and
executing purchases and sales for the firm's clients. She is paid a salary plus commission. Ms. Muffet is
- A. an investment adviser.
- B. a broker-dealer.
- C. an investment adviser representative.
- D. an agent.
Correct Answer: D 🗳️
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Which of the following is an example of commingling?
- A. Mr. Hawk encourages his clients to leave their securities in "street name" with the broker-dealer for
which Mr. Hawk works. - B. In order to generate more commissions for herself Ms. Fox makes trades on some of her client's
accounts and has the trade confirmations sent to a P.O box she owns. - C. Sly is an agent with a broker-dealer who recently executed a stock purchase for his client and had the
client make the check for the purchase out to Sly for deposit in Sly's broker-dealer account. - D. All of the above are examples of commingling.
Correct Answer: C 🗳️
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Sam Shyster had his day in court-and lost. His license to do business as an investment adviser in the
state has been revoked. What legitimate options does Sam have available to him now?
- A. Sam has 45 days in which to file an appeal with the attorney general.
- B. Sam can move to another state and apply for registration as an investment adviser there.
- C. Sam can register with the SEC as an investment adviser, which will exempt him from state registration
requirements. - D. Sam has 60 days to file an appeal of the decision in a court of law.
Correct Answer: D 🗳️
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Alter Advisers & Associates is a small investment adviser partnership registered only in a single state.
One of the partners has died, and the surviving spouse has sold that partnership interest to the surviving
partners. Which of the following statements are true?
I. Alter Advisers must inform the state Administrator of this event.
II. Alter Advisers must inform the SEC of this event.
III. Alter Advisers must notify the firm's clients of this event.
- A. I only
- B. I and III only
- C. I and II only
- D. I, II, and III
Correct Answer: B 🗳️
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