Series 63 practice questionhardAdministrator Powers — Cancellation vs. Revocation
An investment adviser registered in a state fails to respond to any communications and cannot be located at the address on file. The Administrator should:
- ACancel the registration due to the registrant's inability to be located✓ Correct answer
- BIssue a cease and desist order
- CRevoke the registration as punishment for noncompliance
- DSuspend the registration for 30 days pending investigation
Explanation
Why A — Cancel the registration due to the registrant's inability to be located
Under USA Section 204(b), the Administrator may cancel a registration if the registrant no longer exists, has ceased to do business, or cannot be located. Cancellation is non-punitive and differs from revocation, which is a disciplinary action taken as a penalty for wrongdoing.
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