Series 63 practice questionmediumAdministrator authority—outside state
Which of the following is TRUE regarding the Administrator’s investigative power over persons outside their state?
- AThe Administrator may investigate and subpoena persons outside the state if the act or violation affects the state.✓ Correct answer
- BThe Administrator has no power over persons outside state borders.
- CThe Administrator must receive federal approval to investigate outside the state.
- DThe Administrator can only investigate residents of their own state.
Explanation
Why A — The Administrator may investigate and subpoena persons outside the state if the act or violation affects the state.
The Administrator may investigate or subpoena out-of-state persons if the conduct affects the state or its residents (USA Sec 407). There is no need for federal approval.
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