Series 63 practice questionmediumLeast likely Administrator action: mutual fund fraud
If an Administrator suspects fraud by a mutual fund issuer, which of the following actions is LEAST likely to occur?
- ABring state-level fraud charges against the issuer
- BSuspend the fund’s notice filing in the state
- CRequire the fund to undergo a new SEC registration✓ Correct answer
- DCoordinate with federal authorities for further investigation
Explanation
Why C — Require the fund to undergo a new SEC registration
Administrators cannot compel new SEC registration. They may bring fraud charges, suspend filings, or coordinate with federal authorities under USA Sec 402(b), but cannot direct SEC processes.
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