Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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Ari Gaunt is employed by a small state-registered broker-dealer and has recently received notification that his application to be a registered agent of the state has been accepted. Now that he is licensed to execute transactions for the firm’s clients, Ari has a batch of business cards printed up, with a picture of himself on the right-hand side of the card. Underneath the picture is the caption, “State-Approved Agent.” Will Ari be violating any securities laws if he distributes these business cards?
  1. No. However, he may be violating company policy of the broker-dealer he works for by designing his own cards.
  2. No. His registration with the Administrator of the state has been accepted, so he is entitled to call himself a “State-Approved Agent.”
  3. Yes. Agents are not permitted to include a picture of themselves on their business cards.
  4. Yes. It is a violation of a securities law to suggest that he has been approved by the state Administrator.
Explanation
Answer: D - Yes, Ari will be violating a securities law if he distributes the business cards because the cards suggest he has been approved by the state Administrator. The Uniform Securities Act specifically states that the effective registration of a person does not mean that the Administrator has “given approval to” that person. Any statement to this effect is considered an unlawful representation.
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