HESI A2 Practice Exam 3 Welcome to your Series 63 Practice Quizzes. Note: We designed four (4) parts of practice quizzes for each Domain. Each part has 25 questions. Domain 6 (part 2): Remedies and Administrative Provisions​​​​​​​. (25 questions) Please click NEXT to start your Free Series 63 Practice Quizzes right away. Best of Luck! 1. Series 63, Remedies and Administrative Provisions,Series 63 If the Administrator has summarily suspended an investment adviser representative's registration, the registrant may request a hearing by written request and the hearing will be granted within A) 30 days. B) 45 days. C) 60 days. D) 15 days. None 2. Series 63, Remedies and Administrative Provisions,Series 63 An Administrator may deny or revoke a security's exemption A) without a hearing if the issuer is given an opportunity for a hearing after the revocation. B) if the Administrator determines that an exemption applicable to federal covered securities is inconsistent with state securities law. C) for a federal covered security if its issuer is in violation of state law. D) by providing the burden of proof that the exemption is not deserved. None 3. Series 63, Remedies and Administrative Provisions,Series 63 Under the Uniform Securities Act, the Administrator has the power to I. examine files of registered persons who have their offices out of state. II. designate an officer who will then have the power to take evidence regarding investigations. III. sentence willful violators to up to three years in prison. A) I and III B) I, II, and III C) I and II D) II and III None 4. Series 63, Remedies and Administrative Provisions,Series 63 The Administrator has authority to A) issue a cease and desist order with or without a hearing. B) suspend the securities registration of an issue traded on the NYSE after learning that the issuer’s CEO has been convicted of a securities-related crime. C) issue a cease and desist order only after a hearing. D) order the arrest of a person who refuses to obey a subpoena issued in connection with an investigation or proceeding under the Uniform Securities Act. None 5. Series 63, Remedies and Administrative Provisions,Series 63 Under which of the following circumstances may an Administrator revoke an adviser's registration? A) The adviser has been declared mentally incompetent by a court of jurisdiction. B) The adviser cannot be located after a reasonable search by the Administrator. C) The adviser is no longer in business. D) The adviser has been convicted of a nonsecurities-related felony. None 6. Series 63, Remedies and Administrative Provisions,Series 63 The Administrator of a state securities department conducted a hearing regarding misconduct by an investment adviser registered at the state level. The Administrator required the adviser, as well as several clients who had lodged complaints against the adviser, to take a sworn oath that their testimony was true. Does the Administrator have the power to require sworn oaths? A) Yes, the Administrator may require witness oaths because the Administrator is appointed as a judge. B) Yes, the Administrator has the power to require witness oaths because an Administrative hearing is functionally a legal proceeding. C) Yes, the Administrator is empowered to administer oaths as provided in the Uniform Securities Act, as enacted in the Administrator’s state of jurisdiction. D) No, the Administrator was merely attempting to emphasize the seriousness of the hearing, but he holds no such power. None 7. Series 63, Remedies and Administrative Provisions,Series 63 The Uniform Securities Act does not grant the Administrator the authority to commence an action against a broker-dealer registered in her state based upon A) discovering the firm has liabilities that exceed its assets. B) learning that nine years ago, the Administrator of another state found that the president of the firm violated the securities laws of that other state. C) a shareholder, with no management role in the broker-dealer, being unable meet his financial obligations as they come due. "D) suspicion that the broker-dealer has violated the securities laws of her state None 8. Series 63, Remedies and Administrative Provisions,Series 63 The Administrator could deny or revoke the registration of a broker-dealer if A) an officer of the firm was found to be in violation of SEC rules 22 years ago. B) one of the firm’s officers was convicted of a misdemeanor for being a scofflaw. C) the CEO has intentionally failed to file advertising material with the Administrator. D) the major stockholder of the firm was convicted of a securities-related misdemeanor 125 months ago. None 9. Series 63, Remedies and Administrative Provisions,Series 63 While the Administrator has great power, the Uniform Securities Act does place some limitations on the office. Which of the following statements regarding those powers is not true? A) In conducting an investigation, an Administrator can compel the testimony of witnesses. B) An Administrator may, by order, deny the registration of a securities professional who has been convicted of any felony within the past 10 years. C) Investigations of serious violations must be open to the public. D) An Administrator in State A may only enforce subpoenas from State B if the alleged violation would be a violation of State A’s statutes. None 10. Series 63, Remedies and Administrative Provisions,Series 63 Which of the following statements regarding a cease and desist order are true? I. It is an order to stop a specified activity immediately. II. If the registered agent continues to violate the statute, the registered agent may become the subject of a court-issued injunction. III. It may be issued by the state Administrator. A) I and II B) I, II, and III C) I only D) I and III None 11. Series 63, Remedies and Administrative Provisions,Series 63 An Administrator may deny or suspend a registration in all of the following situations except A) if the applicant was convicted of a misdemeanor involving securities within the last 10 years. B) if the applicant is not qualified on the basis of experience. C) if the applicant has been the subject of an adverse order entered by the Administrator of another state within the past 10 years. D) if the registrant has failed to properly supervise agents and investment adviser representatives. None 12. Series 63, Remedies and Administrative Provisions,Series 63 Under the Uniform Securities Act, a state securities Administrator who believes that a registered investment adviser representative is about to violate a provision of the act would initially A) issue an order that permanently bars the investment adviser representative from conducting business in the state. B) issue a cease and desist order. C) withdraw the investment adviser representative’s license. D) seek a court injunction to prevent the pending violation. None 13. Series 63, Remedies and Administrative Provisions,Series 63 Under the Uniform Securities Act, an Administrator who believes a violation has occurred or is about to occur may I. issue a cease and desist order without a prior hearing. II. bring action to obtain an injunction and have a receiver appointed over the alleged violator's accounts. III. seek a court order requiring the alleged violator to make restitution to others. A) I and II B) II and III C) I and III D) I, II, and III None 14. Series 63, Remedies and Administrative Provisions,Series 63 According to the Uniform Securities Act, under which of the following circumstances may an Administrator cancel an agent's registration? A) The agent is the subject of an insider trading lawsuit. B) The Administrator determines it would be in the public interest. C) The agent is judged to be mentally incompetent. D) The agent has admitted to selling unregistered exempt securities to individual clients. None 15. Series 63, Remedies and Administrative Provisions,Series 63 An Administrator has specific authority under the Uniform Securities Act to do all of the following except A) enforce subpoenas in the state at the request of an Administrator of another state for alleged violations that occurred in another state. B) issue emergency injunctions to prevent a violation of the act. C) require that the proceeds from an offering be held in escrow until the issuer receives a certain percentage of the sale of the securities offered. D) suspend the registration of a security if the suspension is in the public interest and the offering has excessive commissions. None 16. Series 63, Remedies and Administrative Provisions,Series 63 Which of the following statements is true? A) An Administrator can summarily suspend a pending registration. B) An Administrator may not vacate an order without a hearing. C) An Administrator may issue a stop order without prior notice and opportunity for a hearing. D) An Administrator may cancel a registration for the same reasons he revoked or suspended a registration. None 17. Series 63, Remedies and Administrative Provisions,Series 63 The Administrator of State X receives a phone call warning that, within the next couple of weeks, a scam is going to be perpetrated in his state by someone from State Y. The tipster even supplies the Administrator with names of people who will be involved and ends the conversation by telling the Administrator that he himself is a resident of State Z. Which of the following would most likely be done? A) The State X Administrator would publish a warning to all residents. B) The State X Administrator would contact a court of competent jurisdiction to obtain an injunction. C) The State X Administrator would immediately begin an investigation. D) Because several states are involved, the Administrator must turn this information over to the SEC. None 18. Series 63, Remedies and Administrative Provisions,Series 63 Under the Uniform Securities Act, which of the following is not a reason for canceling an agent's registration? A) The agent has engaged in an unethical business practice. B) The agent has been found by a court to be mentally incompetent. C) The agent cannot be located after a reasonable search. D) The agent has ceased to do business as an agent. None 19. Series 63, Remedies and Administrative Provisions,Series 63 Under the Uniform Securities Act, all of the following statements regarding a broker-dealer withdrawing its registration are true except A) it cannot take effect if the Administrator is instituting a revocation proceeding. B) it must be in writing. C) it prevents the broker-dealer from re-registration in the future. D) it is generally effective 30 days after written notification. None 20. Series 63, Remedies and Administrative Provisions,Series 63 When an Administrator acts summarily to suspend the registration of a security, which of the following statements is true under the Uniform Securities Act? A) The registrant must be promptly notified of the action and given an opportunity for a hearing. B) Broker-dealers may only accept unsolicited orders during the period of suspension. C) The suspension will not go into effect until after a hearing. D) A hearing must be held within 10 days of written request by the registrant. None 21. Series 63, Remedies and Administrative Provisions,Series 63 It is a violation of the Uniform Securities Act if an agent A) makes any material representation in the offer or sale of a security. B) engages in honest or ethical business practices. C) offers or sells any security unless it is registered. D) files a fraudulent application. None 22. Series 63, Remedies and Administrative Provisions,Series 63 Under the Uniform Securities Act, all of the following are grounds for suspension, denial, or revocation of an issuer's registration statement except A) failure to pay filing fees. B) the security is subject to an administrative stop order in a federal court. C) unreasonable compensation to the underwriters. D) information in the registration statement is complete. None 23. Series 63, Remedies and Administrative Provisions,Series 63 Under the Uniform Securities Act, which of the following would not be an appropriate cause for an agent's registration to be canceled by the Administrator? A) The agent is found by a court to be mentally incompetent. B) The agent is found by a court to have violated a securities statute. C) The agent cannot be located after a reasonable search. D) The agent has died. None 24. Series 63, Remedies and Administrative Provisions,Series 63 The Uniform Securities Act provides that the state Administrator may deny the registration of a broker-dealer for all of the following reasons except A) the applicant is financially insolvent. B) the applicant is not qualified due to a lack of experience. C) a willful violation of the Uniform Securities Act has occurred. D) the applicant is enjoined temporarily from engaging in the securities business. None 25. Series 63, Remedies and Administrative Provisions,Series 63 To protect the public, the Administrator may do all of the following except A) require an applicant for registration to submit to an oral examination. B) deny the registration of an agent with insufficient net capital. C) deny the registration of an investment adviser whose assets under management are less than $100 million. D) require an applicant for registration as both a broker-dealer and an investment adviser to limit activities to those of a broker-dealer due to lack of qualifications to render investment advice. None 1 out of 25 Time is Up! Time's up
