State RegulationsFL specificDifficulty 2/5
The Office of Financial Regulation wants to pursue an enforcement action against a Florida-licensed securities dealer for violating state financial statutes. Which action is within the OFR's authority?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Florida law, the OFR may bring administrative actions only against the financial institutions it regulates - banks, securities dealers, and consumer finance companies. Revoking an insurance agent's license is a DFS action under Chapter 626, Florida Statutes, and proceedings against insurers (including cease-and-desist orders and delinquency receiverships) belong to Florida's insurance regulators, the DFS and the Office of Insurance Regulation, under the Florida Insurance Code. An exam candidate should match each enforcement power to the correct office.
Why the other options are wrong
- A) Insurance agent license discipline is administered by the Department of Financial Services, which supervises agent licensing under Chapter 626, Florida Statutes.
- B) Receivership and delinquency proceedings against insurers are handled under Chapter 631, Florida Statutes, by the DFS and the courts, not the OFR.
- D) Cease-and-desist orders against unauthorized insurers are issued by Florida's insurance regulators (DFS/OIR), which is outside OFR jurisdiction.
Memory hook
OFR disciplines only its own licensees - banks and securities firms.