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← Series 63: Regulation of Securities & Issuers
Series 63 practice questionhardStop Order—Administrative Procedure

Under the USA, when the Administrator issues a stop order, what procedure must be followed?

  1. AA hearing must be held before the order is issued
  2. BThe Administrator must promptly notify the applicant and provide opportunity for a hearing✓ Correct answer
  3. CThe Administrator must notify the SEC for approval
  4. 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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