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FINRA Series63 Exam Syllabus Topics:

SectionWeightObjectives
Regulations of Investment Advisers and Representatives15%- Advertising and recordkeeping rules
- Registration and exclusions
- Fiduciary duties and disclosure requirements
Regulations of Agents and Broker-Dealers25%- Registration requirements and exemptions
- Supervision and compliance responsibilities
- Recordkeeping and reporting obligations
Prohibited Practices and Ethical Obligations20%- Disclosure and fair dealing
- Fraudulent and unethical business conduct
- Administrative remedies and enforcement
State Securities Acts and Related Rules & Regulations40%- Registration of securities and exemptions
- Definitions and jurisdiction
- Regulation of investment advisers and representatives
- Regulation of broker-dealers and agents

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

Don is a state-registered agent with GetErDone Broker-Dealers. He has three other friends who are licensed agents-Huey, Dewey, and Louie. Huey is also an agent with GetErDone Broker-Dealers. Dewey is an agent with a different firm in the same city, CanDo Broker-Dealers. Louie works for a Broker-Dealer with an office just across the state line.
Don can enter a commission-splitting agreement with

  • A. either Huey or Dewey or both
  • B. Either Huey, Dewey, or Louie or any combination of the three
  • C. Dewey only
  • D. Huey only
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

Mr. Teche is an agent with broker-dealer CanDo, and his only compensation is the commissions he earns on trades he executes. He has applied for and been granted an adjunct teaching position with a local university that will allow him to earn money while he is establishing himself.
Which of the following statements are true?

  • A. Mr. Teche is, in essence, an independent contractor with broker-dealer CanDo and can engage in any other business activity at will.
  • B. Both A and B are true.
  • C. CanDo can deny Mr. Teche permission to accept the adjunct teaching position.
  • D. As an agent with broker-dealer CanDo, Mr. Teche must notify CanDo in writing of this position prior to accepting it.
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Correct Answer: B  🗳️

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Question #3

Which of the following is an example of commingling?

  • A. All of the above are examples of commingling.
  • B. Sly is an agent with a broker-dealer who recently executed a stock purchase for his client and had the client make the check for the purchase out to Sly for deposit in Sly's broker-dealer account.
  • C. Mr. Hawk encourages his clients to leave their securities in "street name" with the broker-dealer for which Mr. Hawk works.
  • D. In order to generate more commissions for herself Ms. Fox makes trades on some of her client's accounts and has the trade confirmations sent to a P.O box she owns.
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Correct Answer: B  🗳️

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Question #4

Your client calls you with a market order to purchase 500 shares of the stock of Oracle and asks when payment will be due. If today is Wednesday, September 15th, you inform the client that payment is due on

  • A. Saturday, September 18th.
  • B. Monday, September 20th.
  • C. Thursday, September 16th.
  • D. Friday, September 17th.
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Correct Answer: B  🗳️

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Question #5

Which of the following orders can an Administrator issue without providing prior notice?

  • A. license denial
  • B. cease and desist
  • C. license suspension
  • D. license revocation
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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