Series 63 practice questionmediumState Administrator powers—multi-state IAs
An IA registered in four states is audited by State Y’s Administrator, which discovers a violation. Which action is LEAST likely by State Y’s Administrator?
- ARefer the case to administrators in the other three states
- BInitiate an enforcement action only within State Y
- CRevoke the IA’s registration in all four states✓ Correct answer
- DImpose fines or sanctions for activities affecting State Y clients
Explanation
Why C — Revoke the IA’s registration in all four states
State Y’s Administrator cannot unilaterally revoke registration in other states; C is LEAST likely. They may refer to or communicate with counterparts (A), may enforce in their state (B), and impose sanctions for conduct within their jurisdiction (D).
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