Uniform Securities Agent State Law (Series 63) Practice Exam

What action must an agent take if they move to a new state?

1. They can continue business without registering

2. They should remind clients of the change

3. They must register in the new state

4. They need to take an exam in the new state

The correct answer is: They must register in the new state

When an agent moves to a new state, they must register in that new state to comply with securities regulations. Registration is a legal requirement that ensures the individual is authorized to conduct business in that jurisdiction. Each state has its own set of rules and requirements governing the practice of securities agents, so without completing the registration process, the agent would be operating unlawfully and could face significant penalties. This registration process involves submitting necessary documentation to the state's regulatory authority, which may include proof of qualification and adhering to state-specific laws and regulations. While it may also be beneficial for the agent to communicate the move to clients and to understand the new state's regulations, these actions do not replace the necessity of registering. Following registration, the agent can then legally conduct business in the new state.