Welcome to Criminal, Civil, and Judicial Remedies: the unit that covers what happens after a securities law violation is discovered, from private lawsuits to criminal prosecution to court-ordered remedies.
Exam Weight: 11% (7 questions, shared with Unit 18)
What You'll Learn
In this unit, you'll cover:
- Civil Liabilities: The buyer's private right of action under the USA, including rescission, damages, burden of proof, statute of limitations, and rescission offers
- Criminal Penalties: Willful violations under state law, including fines, imprisonment, the "willful" standard, and criminal referrals
- Judicial Remedies: Court-ordered relief, including injunctions, receivers, restitution, and disgorgement
- Summary of All Remedies: A master comparison tying administrative, judicial, criminal, and civil remedies together
Why This Matters
The Series 63 exam frequently tests the distinctions between different types of remedies: who can bring each type of action, what the penalties are, and which thresholds and time limits apply. Civil liability questions are especially common because they involve specific rules about burden of proof, the statute of limitations, and rescission offers that are easy to confuse. Understanding the full enforcement landscape (administrative action, private lawsuits, and criminal prosecution) will help you answer these questions correctly.
Let's start with civil liabilities: the buyer's private right of action under the Uniform Securities Act (USA).