Series 63 practice questionhardRevocation—Previous Disciplinary Action
A broker-dealer's registration was revoked by the SEC three years ago for securities violations. Which of the following is correct under the USA?
- AThe Administrator may revoke the firm's state registration based on the SEC's action.✓ Correct answer
- BThe Administrator may not act until a client files a complaint.
- CThe Administrator must wait ten years before acting.
- DThe Administrator may not consider federal actions in state decisions.
Explanation
Why A — The Administrator may revoke the firm's state registration based on the SEC's action.
Section 204 permits the Administrator to act based on disciplinary actions by other regulators, including the SEC. Client complaints or time delays are not required.
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