Remedies and Administrative Provisions

Exam Weight: ~4 questions (2% of exam)

This unit covers the enforcement powers available to state securities regulators and the consequences when securities laws are violated under the Uniform Securities Act (USA). Understanding who has authority, what actions they can take, and what penalties apply is essential for the exam.

What You'll Learn

• Understand the state securities administrator's jurisdiction, investigative powers, and enforcement tools including cease and desist orders, stop orders, and summary actions
• Learn the five types of administrative actions (denial, suspension, revocation, cancellation, withdrawal), the two-part test for disciplinary action, and grounds for each
• Know criminal penalties under the USA including the 5-5-3 rule, the willfulness requirement, and the administrator's referral role
• Apply civil liability rules including who can sue, the damages formula, rescission offers, statutes of limitations, and the judicial review process