Series 63 study guide
Series 63 · Work through your exam, one topic at a time.
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 study guide has 5 sections and about 1,661 words.
01Regulation of Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives
A broker-dealer (BD) is any person engaged in the business of effecting securities transactions for its own account or for the accounts of others. An agent is the individual who represents a BD or an issuer in effecting those transactions.
370 words, about 2 min02Regulation of Securities and Issuers
Notice filing applies to federal covered securities: the issuer files notice documents and fees, and the state cannot demand more. Coordination applies when the issuer is simultaneously registering with the SEC; the state filing becomes effective when the federal registration does.
348 words, about 2 min03Remedies and Administrative Provisions
The Administrator may investigate, subpoena records and witnesses, issue cease-and-desist orders, censure, deny, suspend, or revoke a registration, bar an individual, impose civil penalties, order restitution, and refer matters for criminal prosecution. Typical grounds include filing false or misleading information, fraud or dishonest practices, insolvency, willful violation of securities law, conviction of a felony or a relevant misdemeanor within the past ten years, an injunction against securities activity, a suspension or order from another state, and failure to supervise.
329 words, about 2 min04Communication with Customers and Prospects
State anti-fraud rules reach every communication - written, electronic, or oral. Materials must be fair and balanced, must not omit material facts, and must not mislead by implication, layout, or emphasis.
319 words, about 2 min05Ethical Practices and Prohibited Conduct
An adviser owes a fiduciary duty; an agent owes a duty of fair dealing. Both translate into specific prohibitions: no misrepresentation or omission of a material fact, no unsuitable recommendations, no excessive trading or churning, no unauthorized transactions, no commingling of customer and firm assets, no guaranteeing a customer against loss, and no sharing in a customer's profits or losses without written consent and the firm's approval.
295 words, about 1 min