Series 63 practice questionmediumAdministrator Discretion
Under the USA, which is true regarding the Administrator’s authority over post-registration requirements for broker-dealers?
- AThe Administrator can waive or reduce bonding requirements at their discretion.✓ Correct answer
- BThe Administrator may only enforce requirements exactly as stated in the USA.
- CNo changes can be made after initial registration.
- DThe Administrator can require annual audits but not quarterly reports.
Explanation
Why A — The Administrator can waive or reduce bonding requirements at their discretion.
The Administrator has discretion to waive or reduce bonds (USA Section 202(e)). The other choices restrict this authority or misstate Administrator powers.
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