Series65 MOD 5 State Administrator & Oversight

Card Set Information

Series65 MOD 5 State Administrator & Oversight
2015-01-25 20:00:40

State Administrator & Oversight
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  1. A document is considered _____ when received by the administrator, not when postmarked.
  2. By ______,  the administrator may compel individuals to testify and/or produce records.
  3. Once administrator finds the registered person has violated the Uniform Securities Act, and registered person is suspended, disbarred, or fined this person may:
    • appeal the decision within 60 days
    • **The order takes effect within 30 days, even if an appeal is pending
  4. If an investigation leads to the state administrator taking disciplinary action against a firm or registered individual, the administrator must:
    • Notify the firm/individual of the action taken against them
    • Notify the firm/individual of their right to a hearing
    • If a hearing is requested, grant the hearing to the firm/individual within 15 days of receiving the request
  5. A ___________ order must indicate that both the violation and stopping it is in the public interest.
    • cease and desist (stop)
    • Orders of the administrator may be appealed to the courts within 60 days
  6. Persons convicted of willful violation of the act or knowingly filing a fraudulent document under the act may be subject to:
    • imprisonment and/or fines for each violation.
    •  According to the act, states may impose a maximum penalty of 5 yrs in jail and/or a$10,000 fine.
    • The statute of limitations is 5 years of the violation.
  7. The civil liability to a client is limited to:
    • Restitution (investment losses or damages)
    • Costs
    • Reasonable Interest (usually 6%)
  8. a person may be held civilly liable under the act, the statute of limitations is:
    3 years from the event, or 2 years from the discovery of wrongdoing, whichever occurs first.
  9. If clients fail to accept the tender offer within _______of the offer, they may lose the right to a civil suit.
    30 days
  10. A lawsuit could be avoided by:
    • a tender of the return of the investor’s funds
    • plus legal interest (6% in most states).
    • ** the client must still own the securities
    request for the court to issue an injunction to stop a person from violating the Uniform Securities Act or from attempting to violate the act
  12. What is the difference between an Injunction and a Cease and Desist Order?
    injunction takes effect within 30 days of issue, while a cease and desist order requires the recipient to suspend all business activities immediately.
  13. DISGORGEMENT means:
    returning all remaining funds to investors
  14. RESTITUTION requires:
    the return of all assets and may include damages