Introduction

Welcome to Administrator Powers and Administrative Actions: the unit that covers what the state securities administrator can and cannot do to enforce securities laws.

Exam Weight: 11% (7 questions, shared with Unit 19)

What You'll Learn

In this unit, you'll cover:

• Authority of the State Securities Administrator: Investigative powers, subpoenas, cross-border cooperation, and self-incrimination immunity
• Cease and Desist Orders: The Administrator's most immediate enforcement tool (no court required)
• Injunctions: Court-ordered remedies including rescission, restitution, and disgorgement
• Denial, Suspension, and Revocation of Registration: The two-prong test, 11 statutory grounds, summary suspension, and due process
• Stop Orders for Securities Registrations: Blocking or revoking effectiveness of registration statements
• Federal Covered Securities (Notice Filing): What the Administrator can and cannot do with exchange-listed and Reg D securities
• Criminal Penalties: Fines, imprisonment, the "willful" standard, and the no-knowledge defense
• Judicial Review: How to appeal Administrator orders, the 60-day window, and the stay question
• What the Administrator Can and Cannot Do: The master summary that ties everything together

Why This Matters

This is one of the most heavily tested areas on the Series 63. The exam loves to test the boundaries of the Administrator's power, especially the distinction between administrative actions (no court needed) and judicial remedies (court required). Knowing exactly who can do what (and who cannot) is the key to getting these questions right.

Let's start with the foundation: the Administrator's investigative authority.