Series 63 practice questionmediumAdministrator Discretion
Which of the following is true regarding the Administrator's authority to suspend or revoke a registration?
- AThe Administrator must have a lawful basis and may not act arbitrarily.✓ Correct answer
- BThe Administrator can suspend any registration for any reason.
- CThe Administrator may only revoke registrations after a criminal conviction.
- DThe Administrator can only revoke agent registrations, not broker-dealer registrations.
Explanation
Why A — The Administrator must have a lawful basis and may not act arbitrarily.
Section 204 requires that action be taken for specific lawful reasons, not arbitrary ones. Suspensions are not limited to criminal cases and can apply to all registrants.
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