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← Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardDisqualification for Association

An investment adviser hires an individual whose registration was revoked for securities fraud. Which statement accurately reflects Administrator authority under the USA?

  1. AThe Administrator may revoke the adviser's registration for associating with a barred person.✓ Correct answer
  2. BNo action can be taken unless the adviser also commits fraud.
  3. CThe Administrator must allow the association if disclosed.
  4. DThe Administrator may only fine the adviser.
Explanation

Why A — The Administrator may revoke the adviser's registration for associating with a barred person.

Per Section 204, employing or associating with a person whose registration was revoked for violations is a basis for denial or revocation. No fraud by the adviser is required, and disclosure does not prevent action.

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