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Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardAdministrator Powers — Cancellation vs. Revocation

On a final review set, the question is presented in this context. Prioritize the registration trigger and ignore irrelevant noise. An investment adviser registered in a state fails to respond to any communications and cannot be located at the address on file. The Administrator should:

  1. ACancel the registration due to the registrant's inability to be located✓ Correct answer
  2. BIssue a cease and desist order
  3. CRevoke the registration as punishment for noncompliance
  4. DSuspend the registration for 30 days pending investigation
Explanation

Why ACancel the registration due to the registrant's inability to be located

Under USA Section 204(b), the Administrator may cancel a registration if the registrant no longer exists, has ceased to do business, or cannot be located. Cancellation is non-punitive and differs from revocation, which is a disciplinary action taken as a penalty for wrongdoing. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.

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