Series 63 practice questionhardannual updates
An IA fails to file its annual Form ADV amendment within the 90-day deadline. Under the USA, which of the following is TRUE?
- AThe Administrator may initiate proceedings to revoke or suspend registration✓ Correct answer
- BThe IA may file at its convenience without penalty
- CThe only consequence is a written warning from the Administrator
- DThe IA's records will be automatically seized by the state
Explanation
Why A — The Administrator may initiate proceedings to revoke or suspend registration
Failure to comply with annual update deadlines is grounds for suspension or revocation (USA Section 408). Filing at convenience, mere warnings, or record seizure are not the prescribed consequences.
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