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Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumAdministrator Powers — Felony Convictions

In a state-law practice set, a candidate reviews the following scenario. Focus on what changes once the scenario is viewed through state law. Under the USA, a conviction for which of the following would be grounds for denying an agent's registration?

  1. AA traffic violation resulting in a misdemeanor conviction 3 years ago
  2. BA felony conviction for embezzlement 7 years ago✓ Correct answer
  3. CA civil judgment for breach of a real estate contract
  4. DA regulatory fine paid to the IRS for a late tax filing
Explanation

Why BA felony conviction for embezzlement 7 years ago

Under USA Section 204(a)(2), any felony conviction within the past 10 years is a ground for denial. Embezzlement is a felony, and 7 years falls within the 10-year lookback window. A non-securities misdemeanor, a civil judgment, or a tax penalty would not qualify as grounds for denial. The extra setup is just noise; the controlling state-law rule stays the same.

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