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← Series 63: Remedies & Administrative Provisions
Series 63 practice questioneasyAdministrative Procedures — Right to a Hearing

During a compliance drill, focus on how the Uniform Securities Act applies here. The key is the registration, exemption, or ethical rule doing the real work. Before the Administrator can deny a registration application, the applicant must be:

  1. AConvicted of a felony
  2. BGiven prior notice and an opportunity for a hearing✓ Correct answer
  3. CInvestigated by the SEC
  4. DFound guilty in a civil court proceeding
Explanation

Why B — Given prior notice and an opportunity for a hearing

Under USA Section 204(a), the Administrator cannot deny a registration without providing prior notice and an opportunity for a hearing. This due process requirement ensures that applicants and registrants have a chance to present their case before adverse action is taken. The extra setup is just noise; the controlling state-law rule stays the same.

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