State administrator
Also known as: state securities administrator, securities administrator
The state administrator is the government official or agency responsible for enforcing a state's securities laws under the Uniform Securities Act. It registers securities professionals and securities offerings at the state level and can investigate and penalize violations.
The state administrator is the regulator in charge of securities markets within a single state. While the SEC oversees securities activity at the federal level, each state has its own administrator that enforces its version of the Uniform Securities Act — the model law, often called blue sky law, that most states have adopted. Administrators coordinate nationally through the North American Securities Administrators Association (NASAA).
The administrator's day-to-day work centers on registration. Broker-dealers, agents, investment advisers, and investment adviser representatives doing business in the state generally must register with the administrator, and securities offerings sold in the state must be registered or qualify for an exemption. The administrator can deny, suspend, or revoke these registrations for cause, such as fraud, felony convictions, or violations of securities law.
The administrator also holds broad enforcement powers. It can investigate suspected violations inside or outside the state, issue subpoenas, compel testimony, and issue cease and desist orders — with or without a prior hearing — when it believes a violation is occurring or about to occur. The administrator can refer matters for civil or criminal prosecution but does not itself impose jail time.
The state administrator is one of the most heavily tested topics on the Series 63, Series 65, and Series 66 exams. Expect questions on who must register, which securities and transactions are exempt, the administrator's jurisdiction, and the scope of its enforcement powers.
Key takeaways
- The state administrator enforces state securities (blue sky) laws under the Uniform Securities Act.
- Broker-dealers, agents, investment advisers, and IARs generally must register with the administrator in states where they do business.
- The administrator can deny, suspend, or revoke registrations and issue cease and desist orders.
- Administrators can investigate and subpoena but cannot themselves impose criminal penalties — they refer cases for prosecution.
- The Series 63, 65, and 66 exams test the administrator's registration requirements, jurisdiction, and enforcement powers in depth.