Series 63 practice questioneasyScope of investigations
An Administrator suspects a broker-dealer of fraud. Under the USA, which of the following is TRUE?
- AThe Administrator may investigate any person involved in the suspected violation.✓ Correct answer
- BThe Administrator may only investigate registered broker-dealers.
- CThe Administrator needs a court order to begin the investigation.
- DThe Administrator can only investigate if a customer complaint is filed.
Explanation
Why A — The Administrator may investigate any person involved in the suspected violation.
The Administrator may investigate any person, registered or not, if they may have violated the Act (USA Sec 407). No court order or complaint is required.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Remedies & Administrative Provisions questions
- A registered investment adviser in State Z is alleged to have made misleading statements to clients. The Administrator…
- Before denying, suspending, or revoking a registration, the Administrator must provide:
- An offer to sell securities is made via email from State Q to a resident of State R, who accepts while traveling in…
- If an individual ignores a subpoena issued by the Administrator, the Administrator may:
- Which of the following is NOT a ground for denial of registration under the Uniform Securities Act?
- Under the USA, an Administrator’s investigation into possible violations:
- If a person violates a cease and desist order, the Administrator may:
- Which of the following transactions would give the State Administrator jurisdiction under the USA?