Series 63 practice questionmediumCriminal Penalties—Exempted Persons
Which of the following is LEAST likely to be subject to criminal penalties under the USA?
- AA willful violator who is an agent
- BA willful violator who is a broker-dealer
- CA negligent investment adviser✓ Correct answer
- DA willful violator who is an issuer
Explanation
Why C — A negligent investment adviser
Negligent (unintentional) violations do not qualify for criminal penalties. Willful violators, regardless of title, may face criminal action (Section 409).
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