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Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardAdministrator’s Powers—Out-of-State Respondent

A broker-dealer registered in State A but headquartered in State B is accused of violating the USA in State A. What authority does the Administrator of State A have to initiate service of legal process?

  1. AThe Administrator may serve legal process via the consent to service the B-D filed with State A✓ Correct answer
  2. BThe Administrator must rely on State B's Administrator to serve the process
  3. CThe Administrator cannot serve process outside State A
  4. DThe Administrator must first obtain federal court approval
Explanation

Why AThe Administrator may serve legal process via the consent to service the B-D filed with State A

Section 414(g) allows the Administrator to serve process via the consent to service, which covers legal actions regardless of the respondent's physical location. Reliance on State B or federal courts is not required.

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