Admin - Abilities

Question 1

Can the State Admin:

Issue a Cease and Desist Order?

Answer 1

Yes

Question 2

Can the State Admin:

Issue an Injunction?

Answer 2

No

Question 3

is
gift of stock
considered an offer or a sale?

Answer 3

Both
(An offer and a sale)
(could also mean a solicitation or doing of transaction)

Question 4

Can Admin Impose Civil Penalties

Answer 4

No

Question 5

Can Admin Impose Criminal Penalties

Answer 5

No

Question 6

Does Admin have jurisdiction over an OFFER to buy/sell a security that’s
-made in his state
-accepted in his state

Answer 6

Yes to both

Question 7

What the criteria for a offer being MADE in a state?

Answer 7

If the Offer was:
-originated in the state (the state the advisor is in)
OR
-directed to the state (the state the client is in)
and received in the state

Question 8

Criteria for Denying Registration to an individual who

has been convicted of securities violation in a foreign country

Answer 8

conviction has to have happened in the past 5 years

Question 9

can Admin subpoena witnesses
-residing inside the state
-residing outside the state

Answer 9

-residing inside the state - YES
-residing outside the state - YES

Question 10

When can Admin cancel the registration without a hearing

Answer 10

if the registrant is:
-Dead
-Deemed mentally incompetent
-Missing (Cannot Be Located)
-No longer in Business

(when any of the following apply)

Question 11

Max Penalty for Willful violations of
-Federal Law
(Investment Advisor Act of 1940 and SEC Rules)
-State Law
(USA)

Answer 11

-Federal Law
-fine up to $10k
-up to 5yrs imprisonment
-Suspended for upto 12 months
- Barred from Industry

-State Law
(USA)
-fine up to $5k
-up to 3yrs imprisonment

(this is the max penalties not all of this has to happen but it CAN happen)

Question 12

Client must bring any CIVIL suits to court in what time frame

Answer 12

within:
-3yrs from the violation
or
-2yrs from discovery of violation

WHICHEVER COMES FIRST