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Broker-dealer Nebulous opted to withdraw its registration with the state. Six months later, the Administrator finds that Nebulous had been engaged in fraudulent securities transactions.
Which of the following statements is true?
Suggested Answer: D
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Even though Nebulous withdrew its registration from the state, the Administrator has up to a year to take disciplinary action against the broker-dealer if he discovers that Nebulous has been engaged in fraudulent securities transactions after the fact. The Administrator can retroactively begin a revocation or suspension proceeding. Criminal courts can initiate proceedings anytime within five years of the alleged misdeeds.
4 comments · newest first
RA
Rashida
6 hours ago
I thought the withdrawal meant they were off the hook after a certain time, but now I'm questioning if that's really the case.
EL
Elden
5 days ago
I feel like the Administrator has a longer window to act than just a year, maybe five years? That sounds familiar.
BR
Brittni
11 days ago
I think there was a practice question about disciplinary actions that mentioned a time limit, but I can't recall if it was one year or something longer.
BR
Breana
16 days ago
I remember something about how withdrawals work, but I'm not sure if the timing affects the Administrator's ability to act.