Series 63 practice questioneasyFiling fees for federal covered securities
Which action by a state Administrator is permitted regarding mutual fund shares sold in the Administrator's state?
- AImpose a filing fee and require a notice filing.✓ Correct answer
- BDeny the sale based on the fund's performance.
- CRequire pre-approval of all advertising.
- DPlace additional suitability requirements on purchasers.
Explanation
Why A — Impose a filing fee and require a notice filing.
Mutual funds are federal covered securities. State Administrators may require a notice filing and collect a filing fee (USA Sec. 18), but cannot deny the sale, control advertising, or impose extra suitability requirements.
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