Remedies and Administrative Provisions: Rapid Fire
Chapters in this video
- 0:00 The three rings of enforcement: administrative, civil, criminal
- 1:14 What the administrator cannot do: fines, jail, damages
- 1:56 What the administrator can do: subpoenas, cease and desist, rules, orders
- 3:04 Plain grounds for action and the insolvency catch
- 4:38 Administrative due process and the 15-day summary order hearing
- 5:49 Civil rescission formula and joint and several liability
- 6:53 Criminal penalties: five and three, plus the ignorance defense
- 8:21 Rapid-fire recap: look-back distinctions, immunity, action formula, statute of limitations
What this video covers
- What the state securities administrator can and cannot do, and why the three most common wrong answers are fines, jail, and damages
- The distinction between a rule (broadly applicable) and an order (specific person or situation), and why both must be consistent with the Uniform Securities Act
- The administrative action formula: public interest plus a specific ground, and why neither half alone is enough for denial, suspension, or revocation
- The insolvency catch: individual investment adviser representatives are directly reachable, but a firm must itself be found insolvent
- The civil recovery formula for rescission: consideration paid plus interest, costs, and attorney's fees minus income received, and the statute of limitations (two years from discovery, three years from sale)
- The criminal penalty memory aid: five and three ($5,000 fine and three years imprisonment per willful violation), plus the narrow ignorance defense
- The 10-year felony look-back versus the securities-business limitation on misdemeanors, and transactional immunity for compelled testimony
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 66 course also includes adaptive practice questions and spaced-repetition flashcards.