This chapter covers 11% of the Series 63 exam (approximately 7 questions).
What You'll Learn
| Unit | Topic | Key Concepts |
|---|---|---|
| 1 | Authority of the State Securities Administrator | Who the Administrator is, rulemaking, investigations, and the limits of the office |
| 2 | Administrative Actions | Cease and desist orders, denial and revocation, stop orders, notice filings, judicial review |
| 3 | Other Penalties and Liabilities | Criminal penalties, civil liabilities and rescission, injunctions, and judicial remedies |
Why This Chapter Matters
The Administrator's power splits cleanly into what it can do alone and what needs a court. Nearly every question in this chapter turns on that line.
Exam Strategy
At 11% of the exam, this chapter produces about 7 questions. Focus on:
- Administrator alone: rules, investigations, subpoenas, cease and desist orders
- Administrator plus a court: enforcing a subpoena, obtaining an injunction
- Court alone: criminal penalties, imprisonment, restitution, and disgorgement
- 5-5-3: a 5-year filing period (optional and state-dependent), a $5,000 maximum fine, and 3 years maximum imprisonment
- Civil: rescission of the price paid, plus interest and attorney fees, less income received
-> Start Unit 1: Authority of the State Securities Administrator