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Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumCriminal Penalties — Statute of Limitations

Under the Uniform Securities Act, the statute of limitations for criminal prosecution of a willful violation is:

  1. A1 year from the date of the violation
  2. B5 years from the date of the violation✓ Correct answer
  3. C3 years from the date of the violation
  4. DThere is no statute of limitations for securities crimes
Explanation

Why B5 years from the date of the violation

Under USA Section 409(b), a criminal prosecution must be commenced within 5 years after the alleged violation. This is longer than the civil statute of limitations (3 years from sale / 2 years from discovery) because criminal cases often involve more complex investigations.

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