An agent's registration is not effective during any period when the agent is not associated with a broker-dealer registered within the same state.

• A. True
• B. False
• C. Sometimes true
• D. Not specified

Answer: (A)

The key idea is that an agent’s registration is tied to active sponsorship by a broker-dealer that is registered in the same state. If the agent is not associated with such a broker-dealer, there is no sponsor backing the registration, so the registration cannot be effective for that period. This setup ensures supervision and compliance, because the broker-dealer is responsible for the agent’s activities and ethical conduct in that state. When an agent leaves a firm or becomes unaffiliated, the sponsor must update records (and the registration is withdrawn or becomes inactive), meaning the agent cannot legally transact securities in that state until another association with a registered firm occurs. So the statement is true.