Series 63 practice questionhardAdministrator Discretion
Under the USA, which of the following is TRUE regarding the Administrator's discretion over issuer disclosure requirements?
- AThe Administrator may require amendments for material changes and limit reporting frequency to no more than quarterly✓ Correct answer
- BThe Administrator may demand monthly updates on all business activity
- CThe Administrator cannot require any ongoing issuer reports
- DThe Administrator has no authority over prospectus content
Explanation
Why A — The Administrator may require amendments for material changes and limit reporting frequency to no more than quarterly
The USA gives Administrators power to require prospectus amendments for material changes and to require periodic, but no more than quarterly, reports. (B) exceeds allowed frequency; (C) and (D) are incorrect regarding Administrator authority.
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