Series 63 practice questionhardAdministrator Authority
The Administrator wants to require all broker-dealers to maintain a net capital 10% higher than SEC rules. Under the USA, this action would be:
- ANot permitted, as state net capital requirements cannot exceed SEC levels.✓ Correct answer
- BPermitted if only for firms with out-of-state headquarters.
- CPermitted if only for new registrants.
- DPermitted if the Administrator provides written notice.
Explanation
Why A — Not permitted, as state net capital requirements cannot exceed SEC levels.
State-imposed net capital requirements cannot exceed those set by the SEC (USA Section 202(c)). No exceptions for out-of-state or new firms.
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