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Finra Series-63 Exam Questions
- Topic 1: Definitions of Investment Advisers: This section of the exam measures the skills of compliance officers and covers the definitions of investment advisers, including activities that require registration and exclusions from registration. It focuses on understanding the roles and responsibilities of investment advisers and how they are regulated.
- Topic 2: Regulations of Investment Adviser Representatives: This section of the exam measures the skills of investment adviser representatives and covers the definition of an investment adviser representative, activities requiring registration, and exclusions from registration. It emphasizes the importance of registration for individuals providing advisory services.
- Topic 3: Regulations of Broker-Dealers: This section of the exam measures the skills of broker-dealer managers and covers the definition of a broker-dealer, registration, and post-registration requirements, and activities that require registration. It also includes the supervision of broker-dealer agents, highlighting the regulatory framework for broker-dealers.
- Topic 4: Regulations of Agents of Broker-Dealers: This section of the exam measures the skills of the target audience and covers the definition of an agent of a broker-dealer, registration and post-registration requirements, and activities that require registration. It includes updating uniform forms and understanding exclusions from registration.
- Topic 5: Regulations of Securities and Issuers: This section of the exam measures the skills of Investment analysts and covers the definition of securities and issuers, state registration and post-registration requirements, exemptions from registration, and state enforcement and antifraud authority. It focuses on understanding how securities are regulated at the state level.
- Topic 6: Remedies and Administrative Provisions: This section of the exam measures the skills of regulatory specialists and covers administrative actions, other penalties, and liabilities related to securities violations. It emphasizes the legal and administrative processes involved in enforcing securities regulations.
- Topic 7: Communication with Customers and Prospects: This section of the exam measures the skills of the target professionals in product disclosures, unlawful representations concerning broker-dealer agent registration, performance guarantee prohibition, customer agreements, and correspondence and advertising regulations. It includes social media, email/digital messaging, and website communications.
- Topic 8: Ethical Practices and Obligations: This section of the exam measures the skills of Compliance Officers and covers compensation structures such as fees and commissions, customer funds and securities management, conflicts of interest, and other ethics issues like excessive trading and insider trading. It emphasizes the importance of maintaining ethical standards in the securities industry.
Free Finra Series-63 Exam Actual Questions
Note: Premium Questions for Series-63 were last updated On Feb. 26, 2025 (see below)
Which of the following statements regarding an open-end investment company is not true?
The shares of an open-end investment company are not bought and sold on exchange floors. An open-end investment company is a mutual fund, and its shares are bought and sold through the company. The price per share will be either at net asset value as is the case with a no load fund, or above net asset value, as is the situation with a load fund, when the price is equal to net asset value + the sales charge (load.) Open-end investment company shares are federal covered and, as such, do not need to be registered with the state.
As an agent, which of the following statements about the Securities Investor Protection Corporation (SIPC) can you legitimately make to your client?
The statement that you can legitimately make about the SIPC to your client is that it was established to restore funds to investors when the brokerage firm they have been using is bankrupt or in financial distress. The SIPC does not insure investors against losses in the stock and bond markets like the FDIC does bank deposits, and it does not combat fraud.
Under the guidelines of the Bank Secrecy Act (BSA), the Treasury Department now requires broker-dealers to obtain and keep certain information relating to clients that make or receive funds transfers that involve
Under the guidelines of the BSA, the Treasury Department now requires broker-dealers to obtain and keep information relating to clients that make or receive funds transfers that involve $3,000 or more. If the transaction is a cash transaction over $10,000, the same rules apply, and a Currency Transaction Report must be filed with FinCEN. Under the USA Patriot Act, if the broker-dealer thinks that a transaction of $5,000 or more is suspect, the broker-dealer must file a suspicious activity report (SAR.)
Which of the following laws deals with identity theft protection?
Regulation S-P was enacted by the SEC to deal with identity theft. The law requires financial institutions to provide their clients with a statement of its privacy policies and practices and prohibits the disclosure of nonpublic personal information about even a prospective client to a nonaffiliated third party unless certain conditions are met, including giving the client or prospective client the right to opt out of the disclosure.
Which of the following would a firm not be expected to provide to the Administrator when registering an issue of securities with the state?
The firm will be expected to provide all of the above-sales and advertising materials to be used in the offering, the agreement between the issuing firm and its underwriters, and the agreement among the underwriters themselves.
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Herminia
6 days agoRory
7 days ago