Series 63 case studies
Series 63 · Put your knowledge to work in context.
The Series 63 - formally the Uniform Securities Agent State Law Examination - is a state-law licensing exam administered for NASAA by FINRA. Passing it is normally a prerequisite for state registration as a broker-dealer agent, and most states require it in addition to FINRA's own qualification exams, such as the Securities Industry Essentials exam and the Series 7. The Series 63 case studies are 5 cases and about 3,661 words.
1The Federal Covered Adviser That Opened a Branch
Meridian Wealth LLC is an SEC-registered investment adviser with $210 million in assets under management and its principal office in State A. In March it leased a two-person office in State B - its first location there.
820 words, about 4 min2The $4.2 Million Private Placement
Cobalt Grid Systems, Inc., headquartered in State D, wants to raise 4.2 million of convertible notes. Management decides to rely on Rule 506(b) and sells to 22 purchasers over eight weeks: 19 accredited investors and 3 non-accredited buyers - two long-time hourly employees who each put in 15,000 of savings, and a local dentist who invests $50,000.
706 words, about 4 min3The Summary Suspension
On Monday the Securities Administrator of State E enters an order summarily suspending the agent registration of Rosa, citing a customer complaint that she forged a signature on a variable annuity application and routed the proceeds to fund her own commission. The order is mailed to Rosa that day with a notice stating that a hearing will be scheduled "in due course." Rosa's branch manager tells her the order is void because she never got a hearing first, and that she should keep calling her 140 existing clients to reassure them and keep collecting her trail commissions while the matter is pending.
692 words, about 3 min4Four Communications, One Principal Review
Theo is a registered agent and an investment adviser representative. His principal has told him that all retail communications require pre-approval, but Theo has drafted four items and wants them out this week: (1) a LinkedIn post reading "My advisory clients averaged a 14.6% return last year - message me to find out how"; (2) a client testimonial for his website: "Theo turned my 200,000 into 340,000 in 18 months - I trust him with everything"; (3) a podcast clip in which he says a particular municipal bond "can't lose money because it's backed by the state"; and (4) an email blast to 4,000 addresses bought from a list broker, advertising both brokerage and advisory services and offering a free dinner seminar.
758 words, about 4 min5The 210 Trades in Nadia's Account
Marcus has been Nadia's agent for six years. Nadia is 74, retired, with a 600,000 account and a stated need for about 3,000 a month of income.
685 words, about 3 min