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← Series 63: Regulation of Securities & Issuers
Series 63 practice questionmediumSecurities Registration — Stop Orders

Before issuing a stop order against a registration statement, the state Administrator must:

  1. AProvide prior notice and an opportunity for a hearing to the affected party✓ Correct answer
  2. BObtain a court order from the state supreme court
  3. CReceive approval from the SEC
  4. DWait at least 60 days after the effective date
Explanation

Why A — Provide prior notice and an opportunity for a hearing to the affected party

Under USA Section 306, the Administrator must provide prior notice, an opportunity for a hearing, and written findings of fact and conclusions of law before issuing a stop order. However, if the public interest requires, the Administrator may summarily postpone or suspend effectiveness pending final determination of any proceeding.

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