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, which of the following best describes a 'consent order'?
Answer: An administrative settlement in which the respondent agrees to certain terms without admitting wrongdoing
A consent order is a negotiated settlement where the respondent agrees to comply with certain conditions without formally admitting to the alleged violations.
Under the USA, what is the effect of successfully claiming an exemption on the anti-fraud provisions?
Answer: The anti-fraud provisions apply to all transactions, even those that are otherwise exempt
The anti-fraud provisions of the USA apply to all securities transactions, including those that are exempt from registration, and cannot be waived.
Under the USA, may parties contractually waive the civil liability provisions of the Act?
Answer: No, any such waiver is void and unenforceable
Any provision in a contract that purports to waive compliance with the USA or any rule under it is void and unenforceable.
Under the USA, what is the purpose of requiring broker-dealers to maintain a surety bond?
Answer: To protect clients in the event the broker-dealer is unable to satisfy claims against it
Surety bonds provide a financial safety net to compensate clients if a broker-dealer becomes insolvent or fails to meet its financial obligations.
Under the USA, what remedies can a successful plaintiff in a civil action recover from a violator?
Answer: The consideration paid plus interest at the legal rate, less income received, and reasonable attorney fees
Successful plaintiffs under the USA can recover the consideration paid plus interest, minus any income received, plus reasonable attorney fees and costs.
Under the USA, the Administrator's jurisdiction extends to securities transactions that occur in which locations?
Answer: Offers to buy or sell that originate from, are directed to, or are accepted within the state
The USA gives the Administrator jurisdiction over any offer or sale that originates from, is directed to, or is accepted within the state.
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