Series 63 practice questioneasySEC vs State Jurisdiction
Who has jurisdiction to enforce anti-fraud provisions against a federal covered adviser doing business in a state?
- AOnly the SEC
- BOnly the state administrator
- CBoth the SEC and the state administrator✓ Correct answer
- DNeither, except in criminal cases
Explanation
Why C — Both the SEC and the state administrator
While registration is preempted, state administrators retain authority to enforce anti-fraud provisions (USA Sec. 102(6), 406). Both SEC and state authorities can enforce anti-fraud rules.
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