Question of the Week

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.

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