Series 63 practice questioneasyFederal/State Coordination — State Antifraud Authority
Under NSMIA, states retain the authority to:
- ARequire full registration of all federal covered securities
- BOverride SEC registration decisions for any security
- CSet the offering price for federal covered securities
- DEnforce antifraud provisions against any security, including federal covered securities✓ Correct answer
Explanation
Why D — Enforce antifraud provisions against any security, including federal covered securities
Under NSMIA and USA Section 101, states retain full antifraud authority over all securities, including federal covered securities. While states cannot require registration of federal covered securities, they can still investigate and bring enforcement actions for fraud. No security or transaction is ever exempt from state antifraud provisions.
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