Series 63 practice questionhardAdministrator’s Authority—Failure to Respond
If a registrant fails to respond to a subpoena from the Administrator regarding an investigation, what can the Administrator do under the USA?
- AApply to the appropriate state court to enforce the subpoena✓ Correct answer
- BImpose immediate criminal penalties
- CPermanently revoke the registration with no further action
- DTake no further steps until the registrant responds
Explanation
Why A — Apply to the appropriate state court to enforce the subpoena
Section 411 allows the Administrator to seek court enforcement of subpoenas. Direct criminal penalties, revocation without process, or inaction are not permitted.
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