This chapter covers 20% of the Series 63 exam (approximately 12 questions) - the second-largest section. It governs how securities professionals communicate with and serve their clients.
What You'll Learn
| Unit | Topic | Key Concepts |
|---|---|---|
| 1 | Required Disclosures | Material product disclosures, unlawful registration representations, performance-guarantee prohibition, filing literature, recordkeeping |
| 2 | Customer Agreements and Account Types | New account documentation, trusted contact persons, margin and options account agreements |
| 3 | Advertising, Correspondence, and Social Media | Advertising standards, Administrator filing authority, unlawful representations, social media and digital communications |
Why This Chapter Matters
The previous chapters covered who registers and what gets registered. This chapter covers how registered professionals interact with clients - what they must disclose, how accounts are opened and maintained, and what rules govern their communications.
This is where the rubber meets the road: the exam tests practical scenarios about disclosures, account handling, and advertising compliance that securities professionals encounter daily.
Exam Strategy
At 20% of the exam, this chapter deserves significant study time. Key areas to master:
- Discretionary accounts: Written authorization required before exercising discretion
- Advertising rules: Administrator filing authority and what constitutes misleading communications
Think of it this way: Chapters 2-5 were about getting licensed and getting securities registered. This chapter is about doing the job right: communicating honestly, documenting properly, and protecting client information.