NASAA Series 63Regulation of Broker-Dealers and AgentsHard
A broker-dealer's registration in State M was revoked by the Administrator due to multiple violations of the Uniform Securities Act. What is the earliest time the broker-dealer may reapply for registration in State M?
- AAfter a mandatory waiting period of one year from the date of revocation.
- BUpon the Administrator's discretion, with no fixed waiting period.
- COnly after the Administrator initiates an investigation into the original violations.
- DImmediately, upon correcting the violations.
Show answer & explanationAnswer & explanation
Correct answer: B. Upon the Administrator's discretion, with no fixed waiting period.
The Uniform Securities Act does not specify a mandatory waiting period after a revocation before a firm can reapply. The ability to reapply, and the conditions under which it might be considered, are entirely at the discretion of the Administrator, taking into account the severity of the past violations and any remedial actions taken.
Why the other options are wrong
- A. There is no fixed statutory waiting period of one year for reapplication after revocation under the USA.
- C. The Administrator initiates investigations to *revoke*, not to allow reapplication. The burden is on the firm to demonstrate fitness.
- D. Immediate reapplication is highly unlikely after a revocation; the Administrator needs assurance of long-term compliance.
Reapplication After Revocation
After a registration has been revoked, the ability for a firm or individual to reapply is solely at the discretion of the Administrator, with no specified statutory waiting period.
- Revocation is a permanent disciplinary action.
- Administrator considers all facts, including corrective actions and public interest.
- No automatic right to reapply or fixed waiting period.
Memory trick: Revocation means you need the Administrator's 'grace' to even ask again.