Series 63 practice questionhardStop Order—Administrative Procedure
Under the USA, when the Administrator issues a stop order, what procedure must be followed?
- AA hearing must be held before the order is issued
- BThe Administrator must promptly notify the applicant and provide opportunity for a hearing✓ Correct answer
- CThe Administrator must notify the SEC for approval
- DThe stop order is effective only after 10 days' notice
Explanation
Why B — The Administrator must promptly notify the applicant and provide opportunity for a hearing
USA Section 306 requires prompt notice and an opportunity for a hearing. A hearing before issuance is not required, nor is SEC approval (C). D is not specified by the USA.
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