This chapter covers 13% of the Series 63 exam (approximately 8 questions).
What You'll Learn
| Unit | Topic | Key Concepts |
|---|---|---|
| 1 | Definition of an Agent of a Broker-Dealer | Agent definition, clerical exclusion, issuer representatives, activities requiring registration |
| 2 | Registration and Post-Registration | Form U4 and U5, effectiveness at noon on the 30th day, updating uniform forms, conduct obligations, denial and cancellation |
Why This Chapter Matters
This is the single heaviest registration chapter at 13%. An agent is always an individual, never the firm, and registration is employer-specific: it goes inactive the moment the agent leaves.
Exam Strategy
At 13% of the exam, this chapter produces about 8 questions. Focus on:
- An agent is an individual. The entity is the broker-dealer
- Clerical and ministerial staff are not agents unless they effect transactions
- Issuer representatives escape the definition only for a narrow list of exempt securities, exempt transactions, and certain federal covered securities
- Registration is effective at noon on the 30th day and expires December 31
- A firm change requires three notifications: the agent, the old firm, and the new firm