Series 63 practice questionmediumRevocation—Failure to Supervise
A broker-dealer allows multiple agents to violate state securities laws. Under the USA, can the Administrator revoke the broker-dealer's registration?
- AYes, for failure to supervise agents.✓ Correct answer
- BNo, only the agents are liable.
- COnly if a client sues the firm.
- DNo, unless criminal charges are proven.
Explanation
Why A — Yes, for failure to supervise agents.
Failure to supervise is explicit grounds for administrative action under Section 204. Liability is not limited to agents, and civil or criminal cases are not preconditions.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Remedies & Administrative Provisions questions
- An applicant for registration fails the Series 63 exam three times. The Administrator:
- Under the USA, the insolvency of which of the following is grounds for denial or revocation of registration?
- A state Administrator summarily suspends an agent's registration and does not schedule a hearing. The agent submits a…
- An applicant failed to disclose a disciplinary action from another state securities agency. The Administrator may:
- A broker-dealer's registration was revoked by the SEC three years ago for securities violations. Which of the following…
- Summary suspension of registration under the USA means:
- An investment adviser hires an individual whose registration was revoked for securities fraud. Which statement…
- An investment adviser is facing revocation of registration. The Administrator must: