Denial, Suspension, or Revocation of Agent, Broker-Dealer, Investment Adviser and Investment Adviser Flashcards
What are the conditions for the administrator to deny suspend or revoke the registration.
if it is in the best interest of the public AND ONE OF THE FOLLOWING
1.Incomplete or false application
2.Violation of federal securities or commodities laws or blue-sky laws
3. Conviction of securities misdemeanor or ANY felony within the last 10 years.
4. Insolvency
5. Failure to pay proper fee
6. Lack of qualification based on experience, training, or knowledge (may not be solely be based on lack of experience)
7 Failure to supervise (IAs and BDs only)
When can a denial, suspension or revocation be entered?
Once a notice to the applicant has been given, as well as an opportunity for a hearing and written findings of the facts and conclusion of law. w
how many days does the admin need to comply when a hearing is requested?
15 days
How many days does the affected party have to apply for judicial review of the admins actions?
60 days
What is the administrator’s summary power?
The Administrator can quickly suspend or delay a registration if waiting could harm the public. The applicant and employer will be informed of the order and the reasons behind it. If the applicant requests, a hearing must be scheduled within 15 days. If no hearing is requested, the order will stay in effect. Final orders cannot be made without a hearing and findings of fact and law.
The Administrator can cancel a registration or application if the registrant or applicant is _________, has been found __________, cannot be _____, or has _______.
The Administrator can cancel a registration or application if the registrant or applicant is no longer in business, has been found mentally incompetent, cannot be found, or has passed away.
Can an individual or firm voluntarily withdraw a registration?
An individual or firm may voluntarily withdraw a registration.
When is the withdrawal effective?
30 days after filing form U5 or sooner if determined by the Admin and no revocation or suspension proceeding is pending. When firms withdraw their registration, both the firm and registered individuals will remain registered for 30 days.
When does the Termination of registration considered final?
Termination of registration is not considered final for up to 1 year after the withdrawal becomes effective. During this time, the Administrator may institute legal proceedings
What is the U4
U4
Form used for individual registration
Creates a person’s CRD or IARD file
Must be updated annually within 30 days of year end
what is the U5
U5
Form used to terminate an individual’s registration
Must be filed by former employer within 30 days of termination
what is the U6
Form used to report disciplinary action taken by a regulator
Includes serious written customer complaints
Pending items are still filed
If resolved without action, to clear an individual’s name, it is reported on a u6 amendment form
