The go-to guide to acing the Series 63 Exam!
Passing the Uniform Securities Agent State Law Examination (Series 63) qualifies an individual to act as a securities agent. The exam covers the principles of state securities regulation as reflected in the Uniform Securities Act and its amendments and related rules, as well as ethical practices and fiduciary obligations. Many states require an agent to pass the Series 63 exam in addition to the Series 6, 7 or 62 exams to conduct securities business within the state.
Created by the experts at The Securities Institute of America, Inc., Wiley Series 63 Exam Review 2020 arms you with everything you need to pass this challenging 60-question test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides:
- Dozens of examples
- Assorted practice questions for each subject area covered in the exam
- Priceless test-taking tips and strategies
- Helpful hints on how to study for the test, manage stress, and stay focused
Wiley Series 63 Exam Review 2020 is your ticket to passing the Series 63 test on the first try - with flying colors!
Table of Contents
About the Series 63 exam xi
About this Book xv
About the Test Bank xvii
About the Securities Institute of America xix
Chapter 1 Federal Law Review 1
The Securities Act of 1933 1
The Prospectus 2
The Final Prospectus 2
Misrepresentations 3
The Securities Exchange Act of 1934 3
Net Capital Requirement 7
Customer Coverage 7
Fidelity Bond 8
The Insider Trading and Securities Fraud Enforcement Act of 1988 8
Firewall 9
The Telephone Consumer Protection Act of 1991 9
National Securities Market Improvement Act of 1996 10
The Uniform Securities Act 11
The Uniform Prudent Investors Act of 1994 12
The Department of Labor Fiduciary Standard 13
The Patriot Act 13
Regulation S-P 14
Identity Theft 15
FINRA Rules on Financial Exploitation of Seniors 16
Chapter 2 Definition of Terms 21
Security 21
Person 23
Broker Dealer 24
Pension Consultants 26
Investment Counsel 26
Form ADV 27
Investment Adviser Registration Database (IARD) 28
Investment Adviser Representative 29
Offer/Offer to Sell/Offer to Buy 31
Sale/Sell 32
Guarantee/Guaranteed 32
12B-1 Fees 32
Contumacy 33
Federally Covered Exemption 33
Power of Attorney 34
Escheatment 34
Pretest 35
Chapter 3 Registration of Broker Dealers, Investment Advisers, and Agents 41
Registration of Broker Dealers and Agents 41
Agent Registration 42
Registering Broker Dealers 43
Financial Requirements 44
Broker Dealers on the Premises of Other Financial Institutions 44
Hiring New Employees 45
Resignation of a Registered Representative 46
Registering Agents 47
Canadian Firms and Agents 49
Investment Adviser Registration 49
The National Securities Market Improvement Act of 1996/The Coordination Act 50
Investment Adviser Representative 51
Investment Adviser Registration 52
Capital Requirements 52
Exams 53
Advertising and Sales Literature 54
Brochure Delivery 55
Wrap Accounts 55
Pretest 57
Chapter 4 Securities Registration, Exempt Securities, and Exempt Transactions 61
Exempt Securities 61
Securities Registration 62
Registration of IPOs Through Coordination 62
Registration Through Notice Filing 63
Registration of Non-Established Issuers/Registration Through Qualification 63
Exempt Securities/Federally Covered Exemption 65
Exempt Transactions 66
Rule 147 Intrastate Offering 69
Pretest 71
Chapter 5 Professional Conduct and Prohibited and Fraudulent Actions 77
Fraud 77
Professional Conduct 78
Suitability 78
Market Manipulation 80
Customer Complaints 81
The Role of the Investment Adviser 81
Additional Compensation for an Investment Adviser 82
Agency Cross Transactions 82
Disclosures by an Investment Adviser 82
Investment Adviser Contracts 84
Private Investment Companies/Hedge Funds 84
Fulcrum Fees 84
Soft Dollars 85
Borrowing and Lending Money 86
Free Services 87
Pretest 89
Chapter 6 The State Securities Administrator and the Uniform Securities Act 97
Actions by the State Securities Administrator 97
Cancellation of a Registration 98
Withdrawal of a Registration 99
Actions Against an Issuer of Securities 99
Rule Changes 99
Administrative Orders 99
Interpretive Opinions 101
Administrative Records 101
Investigations 102
Civil and Criminal Penalties 102
Jurisdiction of the State Securities Administrator 103
Administrator’s Jurisdiction over Securities Transactions 104
Radio, Television, and Newspaper Distribution 106
Right of Rescission 107
Statute of Limitations 107
Pretest 109
Answer Keys 115
Glossary of Exam Terms 123
Index 189
