Series 63: 3.3.3.2. Rescission

3.3.3.2. Rescission

One unique provision available to securities issuers, investment advisers, and broker-dealers to help them avoid administrative action is known as rescission. This typically occurs when a securities professional, firm, or issuer is made aware of a violation that has taken place and wishes to avoid regulatory penalties and legal costs that might otherwise result. Under rescission, the violator offers a client the right to undo advice she was given. For example, if a customer’s account loses a significant percentage of its value because of several unsuitable investments rec