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Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardAdministrative Procedures — Summary Suspension

Under what circumstances may the Administrator issue a summary order suspending a registration without a prior hearing?

  1. AWhenever the Administrator believes any provision of the act has been violated
  2. BOnly after obtaining a court order authorizing the summary suspension
  3. CWhen it is in the public interest and the Administrator finds that the delay caused by providing a prior hearing would be detrimental✓ Correct answer
  4. DOnly when the registrant has been convicted of a felony
Explanation

Why CWhen it is in the public interest and the Administrator finds that the delay caused by providing a prior hearing would be detrimental

USA Section 204(c) permits the Administrator to summarily postpone or suspend a person's registration pending final determination, with prompt notice of the order and reasons and the right to have the matter set down for hearing within 15 days after a written request is received.

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