Series 63 practice questioneasyAdministrator Powers — Cease and Desist
An Administrator believes that a securities firm is engaged in ongoing fraudulent activity. What order may the Administrator issue without first holding a hearing?
- AA permanent revocation order
- BA criminal arrest warrant
- CA cease and desist order✓ Correct answer
- DA court injunction
Explanation
Why C — A cease and desist order
Under USA Section 408(a), the Administrator may issue a cease and desist order — including a summary (temporary) order — without a prior hearing when it is in the public interest and there is evidence of an ongoing violation. The respondent must be given a subsequent opportunity to be heard.
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