Series 63 practice questionmediumGrounds for Administrative Action
An investment adviser representative omitted a material fact on their registration application but claims it was accidental. Under the USA, the Administrator may:
- ADeny or revoke the registration regardless of intent.✓ Correct answer
- BAllow registration because the omission was accidental.
- CRequire a retest only.
- DTake no action unless criminal intent is proven.
Explanation
Why A — Deny or revoke the registration regardless of intent.
Section 204 allows administrative action for any material misstatement or omission, regardless of intent. There is no exception for accidental omissions.
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