Free Series 63 Practice Test (90 Questions)

An agent churned several customer accounts over a year. The branch manager never reviewed the agent's trading, and the firm had no written review procedures. The Administrator wants to act against the broker-dealer, not only the agent. Under the Uniform Securities Act, what is the proper basis?

• AThe agent's violation alone, because a firm is automatically answerable for every act of its agents
• BThere is none, because the Act allows action only against the person who committed the violation
• CThe firm's failure reasonably to supervise its agents, plus a public interest finding
• DThe firm's failure to file a Form U4 amendment for the agent within 30 days

Keyboard shortcuts: Off