Series 63 practice questionmediumUnsolicited orders and Administrator’s power
An Administrator discovers a pattern of broker-dealers abusing the unsolicited order exemption to evade registration. What action is the Administrator MOST likely empowered to take?
- ADeny or revoke the exemption for specific transactions or persons✓ Correct answer
- BImpose criminal penalties directly
- CChange the USA through rulemaking
- DSuspend the license of the entire firm automatically
Explanation
Why A — Deny or revoke the exemption for specific transactions or persons
USA gives Administrators authority to deny or revoke exemptions by order, but not to revise the act or impose criminal penalties directly. Suspension requires due process, not automatic action.
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