Series 63 Remedies & Administrative Provisions Practice Questions
Remedies & Administrative Provisions makes up 7 of every 60 questions on a Tigertest Series 63 practice test. Here are 10 of the 24 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on NASAA's Series 63 test specifications. Original questions; 60 per test in the real exam's proportions, 43 of 60 to pass. Not affiliated with NASAA or FINRA.
1. Under the Uniform Securities Act, which action requires the Administrator to go to court?
- A.Denying a registration
- B.Obtaining an injunction
- C.Issuing a cease and desist order
- D.Issuing a subpoena
Answer: B. The Administrator issues cease and desist orders and subpoenas and denies registrations directly, but must apply to a court for an injunction, a receiver or restitution.
2. Under the USA, the Administrator may conduct investigations:
- A.Only with the SEC's approval
- B.Only after a court order
- C.Only within the state
- D.Within or outside the state
Answer: D. Section 407 lets the Administrator make public or private investigations within or outside the state when needed to find out whether anyone has violated or is about to violate the act.
3. A firm refuses to obey the Administrator's subpoena. The Administrator may:
- A.Ask a court to compel it
- B.Fine the firm on the spot
- C.Jail the firm's officers
- D.Seize the firm's assets
Answer: A. On refusal to obey a subpoena, the Administrator may apply to a court, which can order compliance and punish failure to obey as contempt.
4. Under the USA, the Administrator may issue a cease and desist order:
- A.Only with a court's consent
- B.Only against unregistered firms
- C.With or without a prior hearing
- D.Only after a full hearing
Answer: C. When a person is engaging or about to engage in a violation, the Administrator may order it to stop with or without a prior hearing, and the person may then request one.
5. After the Administrator summarily suspends an agent's registration, the agent requests a hearing in writing. The matter must be set down for hearing within:
- A.30 days of the request
- B.60 days of the request
- C.15 days of the request
- D.10 days of the request
Answer: C. The Administrator must promptly notify the person of a summary order and the right to a hearing. Section 204(c) provides that within 15 days after receipt of a written request, the matter will be set down for hearing. If no hearing is requested or ordered, the order stays in effect until modified or vacated.
6. The Administrator may deny an agent's registration if, within the past 10 years, she was convicted of:
- A.Any felony
- B.Losing a civil lawsuit
- C.An unpaid parking ticket
- D.Any misdemeanor
Answer: A. Grounds include conviction within 10 years of any felony, or of a misdemeanor involving securities or the securities business. Other misdemeanors and civil suits are not automatic grounds.
7. The Administrator may NOT deny a registration solely because the applicant:
- A.Willfully broke the USA
- B.Is enjoined from selling securities
- C.Filed a misleading application
- D.Lacks experience
Answer: D. The USA bars denial on the basis of lack of experience if the applicant is qualified by training, knowledge or both. Injunctions, misleading filings and willful violations are listed grounds.
8. The Administrator may cancel, rather than revoke, a registration when the registrant:
- A.Made a false filing
- B.Can no longer be located
- C.Churned customer accounts
- D.Was convicted of fraud
Answer: B. Cancellation is used when a registrant has ceased to exist or do business, cannot be located, or has been found mentally incompetent. Misconduct leads to suspension or revocation instead.
9. An agent asks to withdraw her registration and no proceeding is pending. The withdrawal takes effect:
- A.60 days after it is filed
- B.30 days after it is filed
- C.Immediately on filing
- D.At the end of the year
Answer: B. Withdrawal becomes effective 30 days after the Administrator receives the request, or sooner if the Administrator so orders, unless a revocation or suspension proceeding is pending.
10. After a withdrawal of registration takes effect, the Administrator may still start a revocation proceeding within:
- A.Two years
- B.Five years
- C.30 days
- D.One year
Answer: D. The USA lets the Administrator institute a revocation or suspension proceeding within one year after a withdrawal became effective, so a registrant cannot escape discipline by quickly withdrawing.
Practice all 24 remedies & administrative provisions questions, and the rest of the 200-question bank, in the free Series 63 training sets. Questions you miss come back until you have mastered them.
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