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Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumLEAST likely: Administrator’s response to out-of-state evidence of fraud

An Administrator in State P receives evidence of a fraudulent securities offering affecting residents in both State P and State Q. Which of the following actions is LEAST likely to be within the Administrator’s immediate powers?

  1. AIssue a cease and desist order against the party.
  2. BCoordinate with State Q’s Administrator to share evidence.
  3. CCommence criminal prosecution in State Q.✓ Correct answer
  4. DInitiate an investigation into parties operating in both states.
Explanation

Why CCommence criminal prosecution in State Q.

Administrators cannot directly prosecute criminal cases in other states (C). Issuing orders, coordinating, and investigating (A, B, D) are within their authority.

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