Regulation of Persons

Question 1

ADMINISTRATOR

Answer 1

the Administrator has jurisdiction over virtually all securities activity that
emanates from his state, as well as that which is received in his state. The Administrator has
jurisdiction over the registration of securities professionals and securities. He has the power to
make rules and issue orders. He can deny, suspend, or revoke registrations.

Question 2

Cease and Desist Order

Answer 2

-used by the Administrator whenever it appears that any registered person has
engaged or is about to engage in any act or practice constituting a violation of any provision of the Uniform Securities Act or any rule or order thereunder.

Question 3

Can the Administrator issue a Cease and Desist order without prior hearing?

Answer 3

Yes.
The Administrator may issue a
cease and desist order, with or without a prior hearing, against the person or persons engaged
in the prohibited activities, directing them to cease and desist from further illegal activity.
Note that this only applies to registered persons, not securities.

Question 4

Stop Order

Answer 4

A stop order is used to deny effectiveness to, or suspend or revoke the effectiveness of, any
registration statement. This applies only to securities, not professionals such as broker-dealers,
agents, investment advisers, and investment adviser representatives.

Question 5

Summary Order (Acting Summarily)

Answer 5

■ Postponing or suspending the registration of any securities professional pending a final
determination of a proceeding related to a problem
■ Postponing or suspending the registration of a security pending a final determination of a
proceeding relating to a problem
■ Denying or revoking a specific security or transaction exemption
In each of these cases, upon the entry of the order, the Administrator must promptly notify
all interested parties that it has been entered, the reasons for the order,

Question 6

Final Orders

Answer 6

Regardless of whether we’re referring to persons, exemptions, or registration, other than in
the case of a summary order, no final order may be entered without:
■ appropriate prior notice to the interested parties;
■ the opportunity for a hearing; and
■ written findings of fact and conclusions of law.

Question 7

PERSON

Answer 7

any individual (sometimes known as a natural person), corporation,
partnership, association, joint stock company, or trust where the interests of the beneficiaries
are evidenced by a security, an unincorporated organization, a government, or a
political subdivision of a government (sometimes known as a legal person). This is a very broad
definition.