Lucky the Banker mascotLTB
Series 63: Remedies & Administrative Provisions
Series 63 practice questionhardWillfulness and aiding and abetting

Which of the following is LEAST likely to result in criminal liability for a willful violation under the USA?

  1. AAn agent knowingly assists a principal in committing securities fraud.
  2. BAn agent ignores clear evidence of illegal activity and continues to facilitate transactions.
  3. CAn agent is unaware of a principal's securities violation and processes transactions in good faith.✓ Correct answer
  4. DAn agent and principal plan and execute a fraudulent offering together.
Explanation

Why CAn agent is unaware of a principal's securities violation and processes transactions in good faith.

Criminal liability for willful violations or aiding and abetting requires knowledge or reckless disregard (409(a)). Innocent, good faith conduct without knowledge does not meet the standard for criminal prosecution.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Remedies & Administrative Provisions questions