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Series 63: Remedies & Administrative Provisions
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:

  1. AFailure to pay required registration fees
  2. BBeing subject to a prior securities-related felony conviction
  3. CEngaging in unethical business practices
  4. DAn unverified rumor unsupported by evidence or a statutory ground✓ Correct answer
Explanation

Why DAn 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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