Chapter 6 - Remedies and Administrative Provisions Flashcards Preview

Series 63 > Chapter 6 - Remedies and Administrative Provisions > Flashcards

Flashcards in Chapter 6 - Remedies and Administrative Provisions Deck (10):
1

The state admin is charged with the following duties

- initiate investigations of potential securities violations involving residents of their state or transactions in their state
- collect evidence
- issue subpoenas requiring people to testify
- request courts and law enforcement to pursue appropriate action
- communicate and publish investigative and hearing results to the public
- make, amend, or rescind orders and rules
- administer oaths and affirmations
- require the production of documents and records
- issue and apply to enforce the subpoenas

2

If a person fails to follow admin's directions/orders, they may

- hold person in contumacy
- order person to appear before admin and testify
- request that an appropriate court issue an injunction
- issue a cease and desist order
- bring an action before court to enforce compliance
- issue an order revoking, denying, suspending or canceling a registration or license (need to give prior notice to all interested parties in this case)

3

Orders that are sent by the admin are effective ______

immediately

4

A request for a hearing must be granted within ______

15 days

5

For criminal violations, must....

have been intentional and must be brought before a court within 5 years of the action

6

Total civil penalties that a firm could be required to pay are equal to one or more of the following, minus any income earned on the investments in question:

- fees and commissions previously paid
- amount paid for the security
- amount paid for investment advise
- amount lost due to investment advise
- interest that would have been otherwise earned
- court and legal costs

7

Statute of limitations for a civil case is either

- 2 years from the date the client discovers the violation or
- 3 years from the date of the violation itself, whichever occurs first

8

Recission is when

a BD, adviser, issuer offers to give the client back their money with interest to avoid a civil suit. If not accepted in 30 days then considered denied.

9

An admin must also issue the "final order" (basically the final verdict) on an issue. The final order may be one of the following

- vacated (charges or penalties are dropped)
- finalized (charges and penalties are confirmed)
- modified (charges and penalties changed)

10

An "interpretive opinion" is when an admin

cuts off the investigation and does not pursue it further