NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
An agent files a notice of withdrawal from registration with the state Administrator on June 1. No revocation or suspension proceeding is pending against the agent. Under the Uniform Securities Act, when does the withdrawal become effective, and for how long thereafter may the Administrator institute a disciplinary proceeding based on conduct occurring while the agent was registered?
- AEffective at the Administrator's sole discretion, with no time limit on jurisdiction
- BEffective immediately on June 1; Administrator loses all jurisdiction over prior conduct
- CEffective 90 days after filing; Administrator retains jurisdiction indefinitely
- DEffective 30 days after filing; Administrator retains jurisdiction for one year after the effective date
Show answer & explanationAnswer & explanation
Correct answer: D. Effective 30 days after filing; Administrator retains jurisdiction for one year after the effective date
Under the Uniform Securities Act, a withdrawal of registration becomes effective 30 days after the notice is filed, provided no revocation or suspension proceeding is pending. The Administrator retains jurisdiction to institute a proceeding based on conduct that occurred while the person was registered for one year following the effective date of withdrawal.
Why the other options are wrong
- A. Incorrect — the timing and jurisdiction period are fixed by statute, not discretionary.
- B. Incorrect — withdrawal is not immediate and the Administrator does retain limited jurisdiction.
- C. Incorrect — the effective period is 30 days, not 90, and jurisdiction is not indefinite.
Withdrawal of Registration
A registrant's voluntary withdrawal becomes effective 30 days after filing, and the Administrator may still act on prior misconduct for one year after that effective date.
- 30-day delay before withdrawal is effective
- Pending revocation/suspension proceedings can extend the process
- One-year post-withdrawal jurisdiction protects investors from past misconduct
Memory trick: Thirty Days to Leave, One Year to Answer