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, all of the following statements regarding criminal liability are accurate EXCEPT:
Solution
B is correct. Criminal sentences under the Act are imposed by a court of law in a criminal proceeding, not by the Administrator. The Administrator may investigate and refer matters for prosecution but cannot itself convict or sentence. The accurate statutory limits are a fine of up to $5,000, imprisonment up to three years, and a five-year statute of limitations for criminal actions.
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.