Series 63 – Uniform Securities Agent State Law Exam Administrative Provisions and Remedies 2

Question 1

Under the USA, what is the purpose of a 'cease and desist' order?

Accepted Answer

To require a person to stop engaging in a practice that violates the USA, pending a full hearing

Answer

To permanently revoke a registrant's license

Answer

To impose a fine for past violations

Answer

To initiate criminal proceedings against a violator

Question 2

Under the USA, can the Administrator issue a summary suspension of a registration without prior notice or hearing?

Accepted Answer

Yes, if the Administrator finds it in the public interest and for the protection of investors

Answer

No, a hearing is always required first

Answer

Only with court approval

Answer

Only if criminal charges have already been filed

Question 3

Under the USA, what is the 'right of rescission' for purchasers of securities sold in violation of the registration requirements?

Accepted Answer

The right to void the transaction and recover the purchase price plus interest, less income received

Answer

The right to demand the seller repurchase the securities at current market value

Answer

The right to exchange the securities for registered securities of equal value

Answer

The right to sue the Administrator for failure to prevent the illegal sale

Question 4

Under the USA, a buyer who receives an offer of rescission from a seller must exercise or reject the offer within how many days?

Accepted Answer

60 days

Answer

15 days

Answer

30 days

Answer

90 days

Question 5

Under the USA, which of the following may the Administrator NOT do without a prior hearing?

Accepted Answer

Permanently revoke a registration

Answer

Issue a subpoena for records

Answer

Conduct an investigation

Answer

Examine the books and records of a registrant

Question 6

Under the USA, who may bring a civil action to enforce the provisions of the Act in addition to private investors?

Accepted Answer

The Administrator through the state Attorney General

Answer

Only private investors with demonstrated losses

Answer

Only federal regulators such as the SEC

Answer

Only FINRA on behalf of registered members