FINRA Series_63 exam : Uniform Securities Agent State Law Examination

Series_63 Exam Simulator
  • Exam Code: Series_63
  • Exam Name: Uniform Securities Agent State Law Examination
  • Updated: Sep 14, 2026
  • Q & A: 255 Questions and Answers

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FINRA Series_63 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: State Securities Acts and Related Rules60%- Uniform Securities Act principles
  • 1. State jurisdiction and definitions
  • 2. Registration of securities and exemptions
- Administrator Powers
  • 1. Rulemaking and investigations
  • 2. Cease and desist orders and enforcement
Topic 2: Ethical Practices and Fiduciary Obligations40%- Ethics in securities business
  • 1. Anti-fraud provisions
  • 2. Fiduciary duties and conflicts of interest
- Client-related rules
  • 1. Client funds and securities handling
  • 2. Disclosure and suitability principles
Topic 3: Regulation of Broker-Dealers and Agents- Broker-Dealer definitions and requirements
  • 1. Agent registration criteria
  • 2. BD registration criteria
- Agent conduct and obligations
  • 1. Customer communications
  • 2. Compensation and transaction rules
Topic 4: Regulation of Investment Advisers and Representatives- Investment Adviser registration
  • 1. De minimis exemption
  • 2. State vs federal covered advisers
- Investment Adviser Representatives
  • 1. IAR registration requirements
  • 2. Post-registration obligations

FINRA Uniform Securities Agent State Law Examination Sample Questions:

Question #1

A-2-Z Associates is a full service brokerage and is also in the investment advisory industry, charging its
clients for investment advice for additional remuneration. Which of the following statements is true?

  • A. A-2-Z can charge the client only an advisory fee when it is serving as an investment adviser; no
    commissions may be collected.
  • B. A-2-Z can charge the client both an advisory fee for its advice and a commission for the execution of a
    trade based on that advice, but it must inform the client of its potential conflict of interest in doing so and
    get the client's written consent.
  • C. A-2-Z can charge the client both an advisory fee for its advice and a commission on any trade the client
    makes based on the advice. This is all laid out in the advertising brochures full service brokerage firms
    like A-2-Z provide their prospective clients.
  • D. A-2-Z can charge an individual client an advisory fee for its advice or a commission when it executes a
    trade that the client makes based on that advice, but not both.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

Which of the following does not describe a prohibited activity by investment advisers and their
representatives, according to NASAA Model Rules?

  • A. A new client comes to Simon LaGree for investment advice. The client has $25,000 to invest.Simon
    tells the client that it will cost the client $5,000 to have a customized financial plan developed for him, but
    after that the client needs to pay only 5% of the total value of the assets under management each quarter.
  • B. The agreement that Simon LaGree has his clients sign indicates that LaGree uses SecureMoney
    Broker-Dealers in executing trades for his clients and that, in return, LaGree receives software from the
    broker-dealer that allows LaGree to perform some fundamental and technical analysis.
  • C. All of the above describe prohibited practices.
  • D. A 72-year-old retired social worker comes to Simon LaGree for investment advice. She has $50,000 to
    invest. Simon recommends she invest half of it in an international growth mutual fund and half in a
    variable annuity.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

Which of the following trades is illegal?

  • A. a market-not-held order
  • B. a short sale
  • C. a margin transaction
  • D. the sale of a mutual fund if the purchaser hasn't received a prospectus
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #4

An investment adviser or its representative may

  • A. exercise discretionary power in the purchase or sale of securities for a client's account as long as
  • B. only exercise any discretionary power in the purchase or sale of securities for a client's account after
    receiving written authority prior to the execution of the transactions.
  • C. exercise discretionary power in the purchase or sale of securities for a client's account as long as it
    receives written discretionary authority over the account within 10 business days of the first discretionary
    transaction placed, assuming oral authority has already been given.
  • D. exercise discretionary power in the purchase or sale of securities for a client's account only after
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #5

After passing the necessary exams, you must submit which of the following to the state Administrator
when applying for registration as an agent?

  • A. proof that you meet the state's minimum net capital requirement
  • B. Form ADV
  • C. U-4
  • D. a recent photograph of yourself
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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