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Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumIntent and recklessness

Which of the following scenarios MOST clearly demonstrates 'willfulness' for criminal liability under the USA?

  1. AAn agent unknowingly breaks the law due to poor record-keeping.
  2. BAn agent makes a sale believing, but not confirming, that an exemption applies.
  3. CAn agent sells unregistered securities after being told by compliance that such sales are illegal.✓ Correct answer
  4. DAn agent's client misleads them, resulting in an accidental illegal sale.
Explanation

Why CAn agent sells unregistered securities after being told by compliance that such sales are illegal.

Willfulness is shown when the agent knowingly disregards the law (Section 409). Ignorance, reasonable but mistaken belief, or client misrepresentation do not constitute willfulness.

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