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REGISTERING AGENTS

Most states require that agents successfully complete either the Series 63 or the Series 66 exam before they may conduct business within their state. In addition to successfully passing the Series 63 or Series 66, agents must also:

• Abide by and understand state securities laws and regulations.

• Recognize that the state may require additional certification regarding the state's securities laws.

• Understand that they may not conduct business until they are properly registered.

TESTFOCUS!

• An agent does not become registered in a state simply by passing the exam. Agents become registered only when the state securities administrator notifies them that they have become registered.

An agent may not be registered in any state without being employed by a broker dealer or issuer, and no broker dealer or issuer shall employ an agent that is not duly registered.

CHANGES IN AN AGENT'S EMPLOYMENT

When an agent changes firms, the agent, former employer, and new employer all must notify the state securities administrator. This is done in most cases quite easily through the Central Registration Depository (CRD) system for all firm and agent information. An agent's termination becomes effective 30 days after notifying the state unless the administrator is in the process of suspending or revoking the agent's registration. The administrator may still revoke an agent's registration for up to one year after the agent's registration has been terminated.

MERGERS AND ACQUISITIONS OF FIRMS

If a broker dealer from out of state is acquiring a broker dealer in state, the successor firm must file an application for registration within the state. The successor firm's registration will become effective upon completion of the transaction. The registration fees for the successor firm will be waived.

 
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