Series 63 practice questionmediumSecurities Registration — Stop Orders
Before issuing a stop order against a registration statement, the state Administrator must:
- AProvide prior notice and an opportunity for a hearing to the affected party✓ Correct answer
- BObtain a court order from the state supreme court
- CReceive approval from the SEC
- 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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