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

A cease and desist order requires an immediate halt to an ongoing violation while full administrative proceedings are pending.

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

The Administrator may summarily suspend a registration without prior hearing if it is necessary in the public interest and for investor protection, but must promptly provide notice and opportunity for a hearing.

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 of rescission allows investors to void an illegal sale and recover the purchase price plus interest at the legal rate, minus any income received from the investment.

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

Under the USA, a buyer must accept or reject an offer of rescission within 30 days of receiving it, or the right is lost.

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

Permanent revocation of a registration requires prior notice and the opportunity for a hearing; only summary suspension can be done without prior hearing in urgent cases.

Series 63 – Uniform Securities Agent State Law Exam Practice Test

Series 63 – Uniform Securities Agent State Law Exam Practice Test

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