Series 63 practice questionhardAdministrative Procedures — Summary Suspension
Under what circumstances may the Administrator issue a summary order suspending a registration without a prior hearing?
- AWhenever the Administrator believes any provision of the act has been violated
- BOnly after obtaining a court order authorizing the summary suspension
- 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
- DOnly when the registrant has been convicted of a felony
Explanation
Why C — When it is in the public interest and the Administrator finds that the delay caused by providing a prior hearing would be detrimental
Under USA Section 204(a), the Administrator may issue a summary order to postpone or suspend a registration pending final determination of a proceeding when the public interest requires it and delay would cause harm. The registrant must still be given prompt notice and an opportunity for a hearing afterward.
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