Series 63 practice questionhardHard: State Enforcement Actions
A federal covered security is sold in State D using fraudulent statements. What enforcement power does the State D Administrator have?
- ANone, as all authority is preempted by federal law
- BMay enforce state antifraud provisions and bring civil or criminal action✓ Correct answer
- CMay revoke the federal covered status of the security
- DMay require registration by qualification
Explanation
Why B — May enforce state antifraud provisions and bring civil or criminal action
State Administrators retain full enforcement power over antifraud provisions, including civil and criminal action, even for federal covered securities. They cannot revoke status or require registration.
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