Which of the following is not an action that the administrator may take?

• A. Make, amend or rescind rules and orders
• B. Conduct investigations and issue subpoenas
• C. Issue cease and desist orders and seek injunctions
• D. Approve a customer loan arrangement between issuer and investor

Answer: (D)

The administrator’s authority is to regulate and enforce securities laws, not to approve private lending terms between issuers and investors. They can shape the rules governing the industry, investigate potential violations, issue subpoenas to gather information, and take enforcement steps such as ceasing unlawful activity or seeking court orders to stop it. Approving a customer loan arrangement between issuer and investor is not a regulator’s action; it’s a lending decision that falls outside securities regulation and would typically be handled by a banking or lending regulator, or not governed by securities rules at all. In short, rulemaking, investigations with subpoenas, and cease-and-desist or injunction actions are within the administrator’s remit, while approving a loan arrangement is not.