Series 63 practice questionmediumStop Orders — Notice and Hearing
Before entering a final stop order against a securities registration, what procedural protection does the Uniform Securities Act generally require?
- AAppropriate prior notice and an opportunity for a hearing✓ Correct answer
- BApproval from FINRA
- CA shareholder vote
- DA federal criminal conviction
Explanation
Why A — Appropriate prior notice and an opportunity for a hearing
A final stop order generally requires appropriate prior notice to the affected persons, an opportunity for a hearing, and the Administrator's required findings. FINRA approval, a shareholder vote, and a criminal conviction are not prerequisites.
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