This chapter covers 12% of the Series 63 exam (approximately 7 questions).
What You'll Learn
| Unit | Topic | Key Concepts |
|---|---|---|
| 1 | Definition of a Broker-Dealer | BD definition, exclusions, the no-place-of-business rules, Canadian limited registration |
| 2 | Registration and Post-Registration Requirements | Form BD, consent to service of process, financial requirements, recordkeeping, denial and revocation |
| 3 | Broker-Dealer Agent Supervision | Written supervisory procedures, OSJs and branch inspections, failure to supervise |
Why This Chapter Matters
A broker-dealer is an entity; its agents are individuals. Most exam traps live in the exclusions and in the three no-office rules, which look alike but turn on different facts.
Exam Strategy
At 12% of the exam, this chapter produces about 7 questions. Focus on:
- Excluded from the BD definition: agents, issuers, banks, savings institutions, and trust companies
- The three no-office rules: the snowbird (vacation) rule, the institution rule, and the de minimis rule
- Canadian limited registration covers two specific categories of person and never waives antifraud
- Failure to supervise is its own violation, separate from the underlying misconduct