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← Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumDistinction—Civil vs. Criminal Limitation Periods

All of the following statements about the statute of limitations for securities violations under the USA are true EXCEPT:

  1. ACriminal prosecution must be brought within 5 years of the violation.
  2. BCivil liability claims must be brought within 3 years of the violation or 2 years after discovery, whichever comes first.
  3. CCivil claims can be brought up to 10 years after the violation if undiscovered.✓ Correct answer
  4. DThe statute of limitations is shorter for civil than for criminal violations.
Explanation

Why C — Civil claims can be brought up to 10 years after the violation if undiscovered.

C is incorrect: The USA (see §410 and §409) sets a maximum of 3 years from violation or 2 from discovery for civil cases. 10 years is not permitted. A, B, and D correctly reflect the law.

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