The following material on registration of persons makes up 30% of your exam. Although this section is not that complicated, it is vital that you are easily able to discern the difference between a broker-dealer, agent, and/or other person. At the end of each part within the section, you will find flashcards to aid your studying. We suggest that you make actual flashcards (3 X 5" index cards work well) to use while preparing.

Exam Tips and Tricks
Be certain that you know your definitions


Consent to Service of Process
We'll start off the section with a brief explanation of consent to service of process as it applies to broker-dealers, agents, investment advisers and investment adviser representatives.

Usually, all persons must sign a consent to service of process, which means that legal papers, such as subpoenas, meant to be served to a registered person, may be served to an Administrator, and will have the same legal force as if served to the individual or company in person. In essence, the Administrator has legally been given power of attorney to receive NON-CRIMINAL grievances on behalf of a registered person by the consent to service of process.

The legal term is that the Administrator has, by the consent to service of process, been appointed as "attorney in fact" to receive legal documents for the registrant.

Broker-Dealer Definition and Exclusions

Related Articles
  1. Insurance

    Is Personal Legal Insurance A Good Deal?

    Some employers offer personal legal insurance as an opt-in benefit. Would it make sense for you?
  2. Managing Wealth

    Why Designate a General Power of Attorney?

    Because it will ensure your financial and personal affairs are handled according to your wishes should you ever be incapacitated or unavailable.
  3. Financial Advisor

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  4. Financial Advisor

    Why Bad Credit Is Bad For Financial Careers

    In order to obtain and maintain a career in the financial industry, it is also important to have a clean credit report.
  5. Financial Advisor

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  6. Personal Finance

    Prepare For Your CFA Exams

    Find out how to get yourself ready for these lengthy and often daunting exams.
  7. Investing

    CPA Exam Tips

    Tips for the CPA exam - how to approach it, what to expect, and the time it takes to complete.
  8. Personal Finance

    Hiring a Qualified Financial Advisor: 5 Key Traits

    Before choosing an advisor, make sure they measure up to these simple standards.
  9. Financial Advisor

    Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.
  10. Managing Wealth

    Trade Name Vs. Trademark: Know the Difference

    Understand the differences between a trade name and a trademark, the different functions they serve and registration considerations for business owners.
Frequently Asked Questions
  1. What's considered to be a good debt-to-income (DTI) ratio?

    Your debt-to-income ratio helps lenders determine your credit worthiness. Find out how to calculate your score and how to ...
  2. What is the difference between a loan and a line of credit?

    Learn to differentiate between lines of credit and standard loans, and determine when you are likely to use each method of ...
  3. What does a Chief Financial Officer (CFO) do?

    A CFO is responsible for accurate reporting of a company's financial information, investing the company's money and identifying ...
  4. How did George Soros break the Bank of England?

    George Soros pocketed $1 billion by betting against the British pound, cementing his reputation as the premier currency speculator ...
Trading Center