Welcome to Unlawful Representations Concerning Broker-Dealer Agent Registration, a short unit built on a single idea the exam returns to again and again: registration is not approval.
Exam Weight: Part of 20% (12 questions total for Chapter 7: Communication with Customers and Prospects)
What You'll Learn
In this unit, you'll cover:
- Unlawful Representations Concerning Registration: Why registration never means the state approved, endorsed, or passed on the merits of a security or a person
Why This Matters
This unit is short because the rule is short, but NASAA gives it its own line in the outline and the exam tests it directly.
A registration becomes effective. It is never "approved." Telling a customer that the state approved a security, or that registration signals the Administrator's endorsement of a firm or an agent, is an unlawful representation on its own, whatever else the professional said.
Let's start with Unlawful Representations Concerning Registration.