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← Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardMulti-step decision: enforcement when out-of-state parties refuse to comply

If an out-of-state firm refuses to comply with a subpoena issued by State G's Administrator, and State G's courts have no jurisdiction over the firm, what is the Administrator's most effective next step?

  1. ARequest that the Administrator or courts of the state where the firm is located enforce the subpoena.✓ Correct answer
  2. BImpose immediate fines on the firm.
  3. CPermanently bar the firm from any securities business in State G without a hearing.
  4. DRely on the SEC to compel compliance.
Explanation

Why A — Request that the Administrator or courts of the state where the firm is located enforce the subpoena.

The USA (Section 407) contemplates Administrators working through the courts where the party is located to enforce subpoenas. B and C are outside the Administrator’s power without due process, and D is not typically appropriate.

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