Free NASAA Series 63 (Uniform Securities Agent State Law Examination) Remedies and Administrative Provisions Practice Questions
Remedies and administrative provisions on the NASAA Series 63 exam cover enforcement actions, judicial remedies, civil liabilities, statute of limitations, Administrator powers, and appeals under the Uniform Securities Act.
Sample Questions
Question 1
Easy
Under the Uniform Securities Act, a state securities Administrator has jurisdiction over an offer of securities when:
Solution
Choice B is correct because the Uniform Securities Act grants the Administrator jurisdiction whenever an offer originates from the state, is directed into the state, or is accepted within the state. This three-pronged test ensures broad jurisdictional coverage to protect state residents from fraud regardless of where the solicitation originates.
Question 2
Medium
Under the Uniform Securities Act, which of the following actions may the Administrator take WITHOUT providing prior notice and a hearing?
Solution
Choice B is correct because the Uniform Securities Act permits the Administrator to summarily suspend a registration — without prior notice and hearing — when the Administrator determines that immediate action is necessary to protect the public interest. A full hearing must be offered promptly after the summary suspension is issued.
Question 3
Hard
A registered agent's registration has been cancelled by the state Administrator. The agent's former client asks about the difference between cancellation and revocation. Which of the following is the MOST accurate explanation?
Solution
Choice A is correct because the Uniform Securities Act draws a clear distinction between cancellation and revocation. Cancellation is a non-punitive administrative action taken when a registrant has ceased to exist, cannot be located, has died, or lacks legal capacity to act. It carries no finding of wrongdoing and no disciplinary stigma. Revocation, by contrast, is a disciplinary action taken in response to a finding of misconduct, violation of securities laws, or conduct inconsistent with the public interest. Revocation requires prior notice and an opportunity to be heard.