Series 63 practice questionhardSummary Action Appeal Timing
A broker-dealer is summarily suspended. The Administrator provides notice of the right to a hearing. If the broker-dealer does not request a hearing, what is the likely outcome?
- AThe suspension is automatically lifted after 30 days
- BThe summary order remains in effect until the Administrator modifies or vacates it✓ Correct answer
- CThe Administrator must still schedule a hearing within 30 days regardless
- DThe SEC will review the suspension automatically
Explanation
Why B — The summary order remains in effect until the Administrator modifies or vacates it
Under USA Section 204(c), if no hearing is requested and none is ordered, the summary order remains in effect until modified or vacated by the Administrator. The model Act does not say it automatically converts into a separate final order.
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