Series 63 practice questioneasyLimitations on state authority over mutual funds
Which of the following actions CANNOT be taken by a state securities Administrator regarding a federally registered mutual fund’s offering documents?
- ARequire the issuer to pay a notice filing fee
- BDemand changes to the fund's SEC-approved prospectus✓ Correct answer
- CRequire the issuer to submit a copy of the SEC registration statement
- DSuspend the notice filing if fraud is suspected
Explanation
Why B — Demand changes to the fund's SEC-approved prospectus
States may not alter or demand changes to SEC-approved prospectuses (USA Sec 18(b)), but may require notice filings, submission of SEC documents, and can take action if fraud is suspected.
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