Series 63 practice questionmediumAdministrator Power — Civil Actions
An agent in State Z made an illegal sale. The Administrator discovers this two years later, but the client has already accepted a rescission offer. Which is the Administrator LEAST likely to do?
- APursue further civil recovery for the client✓ Correct answer
- BSanction the agent administratively
- CRefer the matter for criminal prosecution if warranted
- DInvestigate the broker-dealer's supervisory procedures
Explanation
Why A — Pursue further civil recovery for the client
Once the client accepts rescission, civil recovery is satisfied (USA 410(f)). The Administrator may pursue administrative or criminal action, or investigate firm procedures, but cannot pursue further recovery for the client.
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