Series 63 practice questionmediumAdministrator Discretion & Non-summary Actions
All of the following may support an Administrator's registration action against a broker-dealer under the USA EXCEPT:
- AFailure to pay required registration fees
- BBeing subject to a prior securities-related felony conviction
- CEngaging in unethical business practices
- DAn unverified rumor unsupported by evidence or a statutory ground✓ Correct answer
Explanation
Why D — An unverified rumor unsupported by evidence or a statutory ground
USA Section 204 permits registration action on specified grounds and with the required public-interest finding and process. An unsupported rumor is not a statutory ground. Whether a matter is handled initially by summary order does not make the underlying conduct unavailable for a non-summary proceeding.
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