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

Question 1

What is the statute of limitations for bringing a civil action under the USA?

Accepted Answer

Two years from discovery or three years from the transaction, whichever comes first

Answer

Under the USA, civil actions must be brought within two years after discovery of the facts or three years after the transaction, whichever expires first.

Question 2

What is the maximum criminal penalty for a willful violation of the USA?

Accepted Answer

$5,000 and/or 3 years imprisonment

Answer

The maximum criminal penalty for a willful violation of the USA is a $5,000 fine and/or up to three years imprisonment.

Question 3

Under the USA, the Administrator may issue a 'stop order' to do which of the following?

Accepted Answer

Suspend or revoke the effectiveness of a securities registration

Answer

A stop order suspends or revokes the effectiveness of a securities registration statement when the Administrator finds grounds to do so.

Question 4

Which of the following is a civil remedy available to an investor defrauded under the USA?

Accepted Answer

Rescission of the transaction and recovery of the purchase price plus interest less income received

Answer

Defrauded investors may sue for rescission, recovering the purchase price plus interest at the legal rate, less any income received, plus reasonable attorney fees.

Question 5

Before revoking a registration under the USA, the Administrator must provide what to the registrant?

Accepted Answer

Prior notice and an opportunity for a hearing

Answer

Due process requires that the Administrator provide prior notice and an opportunity for a hearing before revoking a registration.

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