Series 63 practice questionmediumCriminal Penalties—Administrative vs. Criminal
A state Administrator permanently bars an agent from registration for a willful violation. Which of the following is also possible under the USA?
- AThe agent may be subject to criminal prosecution and penalties if convicted in court✓ Correct answer
- BThe agent cannot face any further penalties
- COnly civil penalties are possible after administrative action
- DThe Administrator can imprison the agent
Explanation
Why A — The agent may be subject to criminal prosecution and penalties if convicted in court
Administrative actions (like barring registration) do not preclude criminal prosecution, which must occur through the courts (Sections 406–409).
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