This chapter covers 20% of the Series 63 exam (approximately 12 questions).
What You'll Learn
| Unit | Topic | Key Concepts |
|---|---|---|
| 1 | Required Product Disclosures | Product disclosures, privacy and information security, recordkeeping |
| 2 | Unlawful Representations Concerning Broker-Dealer Agent Registration | Why registration is never approval or endorsement |
| 3 | Performance Guarantees Prohibition | Why no professional may guarantee a customer against loss |
| 4 | Customer Agreements | New account, margin, and options account requirements |
| 5 | Correspondence and Advertising | Communications with the public, filing sales literature, social media and digital messaging |
Why This Chapter Matters
At 20% this is the second-heaviest chapter. Two of its units are short but carry their own outline line: registration is never "approval," and no one may guarantee a customer against loss.
Exam Strategy
At 20% of the exam, this chapter produces about 12 questions. Focus on:
- Registration becomes effective, never approved. Telling a customer otherwise is an unlawful representation
- No guarantee against loss by any professional, in any form
- Account paperwork differs by account type: new account, margin, and options each add requirements
- Social media and digital messaging are communications like any other and follow the same standards