Introduction

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 SIPC protection.

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 Section 410, including rescission, damages, burden of proof, statute of limitations, and rescission offers
• Criminal Penalties: Willful violations under Section 409, including fines, imprisonment, the "willful" standard, and criminal referrals
• Judicial Remedies: Court-ordered relief under Section 408, including injunctions, receivers, restitution, and disgorgement
• SIPC: The Securities Investor Protection Corporation, including coverage limits, what is (and is not) protected, and how it differs from FDIC insurance
• Summary of All Remedies: A master comparison tying administrative, judicial, criminal, civil, and SIPC 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 (private lawsuits, criminal prosecution, and investor protection) 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).