Series 63 practice questionmediumEnforcement of Antifraud Provisions
Which authority enforces antifraud provisions for a covered security offered in multiple states?
- ABoth the SEC and state Administrators✓ Correct answer
- BOnly the SEC
- COnly the state where the issuer is domiciled
- DOnly the Administrator in the purchaser’s state
Explanation
Why A — Both the SEC and state Administrators
Both federal (SEC) and state Administrators have authority to enforce antifraud provisions, even for covered securities (USA Section 410, Section 18(c)). State authority is not exclusive to domicile or purchaser state (C, D), nor is it solely federal (B).
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