Administrative Provisions and Remedies Flashcards
6 cards from real Series 63 – Uniform Securities Agent State Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Administrative Provisions and Remedies flashcards as text
Under the USA, what is the purpose of a 'cease and desist' order?
Answer: To require a person to stop engaging in a practice that violates the USA, pending a full hearing
A cease and desist order requires an immediate halt to an ongoing violation while full administrative proceedings are pending.
Under the USA, can the Administrator issue a summary suspension of a registration without prior notice or hearing?
Answer: Yes, if the Administrator finds it in the public interest and for the protection of investors
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.
Under the USA, what is the 'right of rescission' for purchasers of securities sold in violation of the registration requirements?
Answer: The right to void the transaction and recover the purchase price plus interest, less income received
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.
Under the USA, a buyer who receives an offer of rescission from a seller must exercise or reject the offer within how many days?
Answer: 60 days
Under the USA, a buyer must accept or reject an offer of rescission within 30 days of receiving it, or the right is lost.
Under the USA, which of the following may the Administrator NOT do without a prior hearing?
Answer: Permanently revoke a registration
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.
Under the USA, who may bring a civil action to enforce the provisions of the Act in addition to private investors?
Answer: The Administrator through the state Attorney General
The Administrator may direct the Attorney General to bring civil enforcement actions to enjoin violations and seek other civil remedies under the USA.
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