Series 63 practice questionmediumAdministrator Powers — Penalties
A registered agent in State X is discovered to have engaged in dishonest and unethical business practices. Which of the following penalties may the Administrator impose?
- ACriminal imprisonment of up to 3 years
- BAward monetary damages to the agent's clients
- CSuspension or revocation of the agent's registration✓ Correct answer
- DImpose punitive damages on the agent's employing broker-dealer
Explanation
Why C — Suspension or revocation of the agent's registration
The Administrator's authority under USA Section 204 is administrative in nature, including the power to suspend or revoke registrations. The Administrator cannot impose criminal penalties (that requires a court) or award damages to clients (that is a civil court function).
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Remedies & Administrative Provisions questions
- Which of the following is an example of market manipulation prohibited under USA Section 501?
- An agent fails to mention a pending lawsuit against an issuer when recommending its stock. Under the USA, this is…
- An agent excessively trades in a client’s account to generate commissions, without regard to the client’s objectives.…
- An agent in State X tells a client, 'This security is registered with the Administrator, so it is guaranteed to be…
- Under the USA, which of the following would be considered making an untrue statement of a material fact?
- Which conduct is prohibited in connection with an offer, sale, or purchase under the Uniform Securities Act's antifraud…
- An agent in State Y commits fraud in the sale of a security to a resident of State Z. Under the USA, who may take…
- Under what circumstance can the Administrator issue a final order of denial, suspension, or revocation without a…
