RegistrationQuestion 19 of 100
A broker-dealer registered in State A opens a branch office in State B. Its only State B customers will be three large insurance companies. Regarding State B registration, the firm:
a.Is excluded because its only clients there are institutions
b.Must register in State B because it maintains a place of business in the state
c.Must register only after it accepts a retail account
d.May rely on its State A registration under reciprocity
Explanation
The institutional exception is available only to a firm with no place of business in the state. Once the firm opens an office in State B, registration is required regardless of how sophisticated its customers are. The Uniform Securities Act contains no general reciprocity provision that lets one state's registration substitute for another's.
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