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Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumEdge Case - Delayed Disclosure

An issuer learns of a material event but delays filing an amendment citing ongoing internal investigation. What is the Administrator's MOST likely response?

  1. AGrant an indefinite extension until the investigation is complete
  2. BRequire immediate filing with available information and a follow-up amendment if needed✓ Correct answer
  3. CPermit delay if the issuer promises to inform investors directly
  4. DTake no action unless investors complain
Explanation

Why BRequire immediate filing with available information and a follow-up amendment if needed

The USA (Section 305) requires prompt amendment for material changes. The Administrator will expect timely disclosure with subsequent updates as clarity improves. Delay (A, C) or inaction (D) violates the Act.

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