Series 63 Cheat Sheet.

If the question says … the answer is …

• If an individual represents an issuer in exempt transactions with no commission, then not an agent, no registration.
• If a firm has no office in the state and serves only existing customers who moved there, then outside the broker-dealer definition until it solicits a new one.
• If the customer signed anything waiving the Act, then the waiver is void and the conduct is judged as if unsigned.
• If the stem asks who proves an exemption, then the person claiming it.
• If the Administrator acts before any hearing, then a cease and desist order with a hearing on request; denial, suspension and revocation follow notice and a hearing.
• If the security is federal covered, then notice filing, consent to service and a fee; no merit review, antifraud still applies.
• If the customer named security, quantity and side and left only timing and price, then not discretion; no written authority, good for the day.
• If an agent promises to make up losses, guarantees a result, or says registration means approval, then prohibited, whatever is written, approved or accredited.
• If customer money lands in an agent’s personal account, then commingling, complete at that moment.
• If the trade was unauthorized, then profit and a later signature change nothing; a blank signed ticket adds a records violation.
• If a trade runs between two investors, then secondary market; the issuer receives no proceeds.
• If an insurer guarantees the rate, then fixed annuity, not a security; a variable annuity is one.

Numbers that decide questions

Outline weights

Each area’s slice of our 193-question bank, against 60 scored items.

• Ethical Practices and Obligations (24%) — 46 questions in our bank
• Communication with Customers and Prospects (19%) — 37 questions in our bank
• Regulation of Broker-Dealer Agents (13%) — 25 questions in our bank
• Regulation of Broker-Dealers (12%) — 23 questions in our bank
• Remedies and Administrative Provisions (12%) — 23 questions in our bank
• Regulation of Securities and Issuers (10%) — 20 questions in our bank
• Regulation of Investment Adviser Representatives (5%) — 10 questions in our bank
• Regulation of Investment Advisers (5%) — 9 questions in our bank

Night-before checklist

• Say the passing line aloud: 43 of 60 scored, 65 on screen, 75 minutes.
• Recite the three essentials of discretion: security, quantity, side. Time and price are not discretion.
• Recite the two exemption facts: the claimant proves it, and no exemption reaches the antifraud provisions.
• Recite the hearing order: cease and desist first, hearing after; denial or revocation only after notice and a hearing.
• Confirm the appointment falls inside the 120-day window and the test center address matches the confirmation.