Under the Uniform Securities Act,
the Administration is empowered to perform which
of the following acts?
I. Subpoena a broker-dealer’s books and records
after a suspension order is received
II. Obtain an injunction against any person the Administrator
suspects of violating the Act
III. Suspend a sales representative’s registration
prior to the hearing, without stating a reason for
the suspension
IV. Revoke the registration of all sales representatives
associated with a broker-dealer at the time the
broker-dealer’s registration is revoked by
the Administrator
a) I, II & IV
b) II only
c) I, II, III & IV
d) I & II
Answer:
The correct answer is a.
The Administrator does have the power to subpoena records
and obtain an injunction. Also, a sales representative’s
registration is only effective when associated with
a broker-dealer, so upon revocation or suspension of
a broker-dealer’s registration, all associated
sales representatives registrations will be revoked
as well, until they become associated with another
broker-dealer. However, the Administrator may not suspend
a registration prior to the hearing unless a reason
for the suspension is stated.
