NASAA Series 63Remedies and Administrative ProvisionsMedium
An Administrator in State X is investigating an agent who has since relocated to State Y, taking relevant business records with him. Can the Administrator subpoena those records even though they are now located outside State X?
- ANo, subpoena power is strictly limited to persons and records located within the Administrator's own state
- BYes, the Administrator may subpoena witnesses and compel production of documents located outside the state in connection with an investigation
- CYes, but only if the SEC first issues a concurrent subpoena
- DNo, only a federal court subpoena can compel records held outside the issuing state
Show answer & explanationAnswer & explanation
Correct answer: B. Yes, the Administrator may subpoena witnesses and compel production of documents located outside the state in connection with an investigation
Under the Uniform Securities Act, the Administrator's investigative and subpoena powers are not confined to the state's borders; the Administrator may subpoena out-of-state witnesses and records relevant to an investigation, and courts will enforce compliance.
Why the other options are wrong
- A. Incorrect; subpoena power is not geographically limited to in-state records.
- C. Incorrect; no SEC concurrence is required for a state subpoena.
- D. Incorrect; state administrators, not just federal courts, may issue enforceable subpoenas reaching outside the state.
Extraterritorial Subpoena Power
The Administrator may subpoena witnesses and documents located outside the state when relevant to an investigation of a securities law violation.
- Not limited by state borders.
- Enforceable through courts if the subject refuses to comply.
- Supports cross-border cooperation among state regulators.
Memory trick: 'Borders don't block subpoenas — records follow the investigation.'