Series 63 practice questioneasyConcurrent Jurisdiction
Which of the following is true regarding the concurrent jurisdiction of federal and state securities laws?
- AStates may enforce antifraud provisions even for federally covered securities✓ Correct answer
- BStates may preempt federal registration requirements
- CFederal law prevents states from investigating securities fraud
- DConcurrent jurisdiction means only federal laws apply to covered securities
Explanation
Why A — States may enforce antifraud provisions even for federally covered securities
States retain the authority to enforce antifraud provisions (USA Section 18(c)), even for covered securities. States cannot preempt federal requirements (B), are not prevented from investigating fraud (C), and concurrent jurisdiction allows for both state and federal action, not just federal (D).
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