Series 63 practice questioneasyAdministrator Powers — Insolvency
Under the USA, the insolvency of which of the following is grounds for denial or revocation of registration?
- AAn agent
- BA broker-dealer or investment adviser✓ Correct answer
- CA client of the broker-dealer
- DAn issuer of exempt securities
Explanation
Why B — A broker-dealer or investment adviser
Under USA Section 204(a)(2)(H), insolvency is a ground for denial or revocation of the registration of a broker-dealer or investment adviser because they hold client funds and assets. Insolvency of an agent (who does not hold customer funds independently) is not separately addressed as a ground.
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