Series 63 practice questionmediumAdministrator Powers — Penalties
For a licensing checkpoint quiz, treat the following as the opening fact pattern. Prioritize the registration trigger and ignore irrelevant noise. A registered agent in State X is discovered to have engaged in dishonest and unethical business practices. Which of the following penalties may the Administrator impose?
- ACriminal imprisonment of up to 3 years
- BAward monetary damages to the agent's clients
- CSuspension or revocation of the agent's registration✓ Correct answer
- DImpose punitive damages on the agent's employing broker-dealer
Explanation
Why C — Suspension or revocation of the agent's registration
The Administrator's authority under USA Section 204 is administrative in nature, including the power to suspend or revoke registrations. The Administrator cannot impose criminal penalties (that requires a court) or award damages to clients (that is a civil court function). The extra setup is just noise; the controlling state-law rule stays the same.
Turn it into reps
Reading one answer is not the same as being ready
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