Series 63 practice questionhardAdministrator Powers — Jurisdiction
A broker-dealer incorporated in State A with its principal office in State B has a client in State C who was sold unregistered securities. Which state Administrator(s) have jurisdiction to take action?
- AOnly the Administrator of State A, where the firm is incorporated
- BOnly the Administrator of State B, where the principal office is located
- COnly the SEC, since multiple states are involved
- DAny state where the offer or sale was directed, including State C✓ Correct answer
Explanation
Why D — Any state where the offer or sale was directed, including State C
Under USA Section 401, the act applies whenever an offer to sell or buy is made or accepted in the state, or when any act constituting part of the transaction occurs in the state. State C's Administrator has jurisdiction because the sale was directed to a client in that state.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Remedies & Administrative Provisions questions
- Under the USA, a conviction for which of the following would be grounds for denying an agent's registration?
- A registered agent in State X is discovered to have engaged in dishonest and unethical business practices. Which of the…
- The Administrator may require which of the following as a condition of registration for agents?
- Under the USA, the insolvency of which of the following is grounds for denial or revocation of registration?