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← Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumCivil Liabilities — Statute of Limitations

Under the USA, what is the statute of limitations for a civil action brought by a buyer against a seller who sold securities through fraud?

  1. A3 years from the date of sale or 2 years from discovery of the violation, whichever comes first✓ Correct answer
  2. B5 years from the date of sale regardless of when the fraud was discovered
  3. C1 year from the date of sale or 6 months from discovery, whichever comes first
  4. D2 years from the date of sale or 1 year from discovery, whichever comes first
Explanation

Why A — 3 years from the date of sale or 2 years from discovery of the violation, whichever comes first

Under the NASAA-updated 1956 USA Section 410(f), a civil action must be brought before the earlier expiration of three years after the sale or two years after discovery of the facts constituting the violation.

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