Arizona Laws 44-1961. Grounds for denial, revocation or suspension of dealer registration; administrative remedies
A. After a hearing or notice and opportunity for a hearing as provided in article 11 of this chapter, the commission may enter an order suspending for a period of not to exceed one year, denying or revoking the registration of a dealer if the commission finds that:
Terms Used In Arizona Laws 44-1961
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Director: means the director of the securities division of the commission. See Arizona Laws 44-1801
- Fiduciary: A trustee, executor, or administrator.
- Fraud: Intentional deception resulting in injury to another.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual, corporation, partnership, association, joint stock company or trust, limited liability company, government or governmental subdivision or agency or any other unincorporated organization. See Arizona Laws 44-1801
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
- Salesman: means an individual, other than a dealer, employed, appointed or authorized by a dealer to sell securities in this state. See Arizona Laws 44-1801
- SEC: means the United States securities and exchange commission. See Arizona Laws 44-1801
- SRO: means any national securities or commodities exchange, registered association or registered clearing agency. See Arizona Laws 44-1801
- Trustee: A person or institution holding and administering property in trust.
1. The application for registration of the dealer, any financial statement, document or other exhibit filed with the application or any supplement or amendment to the application is incomplete, inaccurate or misleading.
2. The dealer is insolvent or is in an unsound financial condition.
3. The dealer has violated this chapter or any rule or order of the commission under this chapter.
4. The dealer purchases or sells securities at such variations from current market prices as, in the light of all the circumstances, are unconscionable.
5. The dealer has failed to file with the commission any record, report, financial statement or other information required under this chapter or any rule or order of the commission under this chapter or has refused to allow an examination into the dealer’s affairs.
6. The dealer is not qualified by training or experience.
7. The dealer has knowingly retained a salesman after notice that the salesman has committed an offense under this chapter.
8. The dealer has been convicted within ten years preceding the date of filing the application for registration as a dealer, or at anytime thereafter, of a felony or misdemeanor involving a transaction in securities, of which fraud is an essential element or arising out of the conduct of any business in securities.
9. The dealer is permanently or temporarily enjoined by order, judgment or decree of an administrative tribunal or a court of competent jurisdiction from engaging in or continuing any conduct or practice in connection with the sale or purchase of securities.
10. The dealer is subject to an order of an administrative tribunal, an SRO or the SEC denying, suspending or revoking membership or registration as a broker or dealer in securities or an investment adviser or investment adviser representative for at least six months.
11. The dealer has been guilty of any fraudulent act or practice in connection with the purchase or sale of securities.
12. The dealer has failed to reasonably supervise its salesmen.
13. The dealer has engaged in dishonest or unethical practices in the securities industry.
14. The dealer has engaged in dishonest or unethical practices in business or financial matters.
B. In addition to denying, revoking or suspending the registration, if the commission finds that a dealer has engaged in an act, practice or transaction described in subsection A, paragraph 4, 12 or 13 of this section, the commission may do one or more of the following:
1. Assess administrative penalties.
2. Order the dealer to cease and desist from engaging in the act, practice or transaction or doing any other act in furtherance of the act, practice or transaction.
3. Take appropriate affirmative action, as prescribed by the commission, to correct the conditions resulting from the act, practice or transaction, including a requirement to provide restitution.
C. It is sufficient cause for denial, revocation or suspension of registration of a dealer as provided in this section, if the dealer is a partnership, corporation, unincorporated association or trust, that a member of the partnership, an officer or director of the corporation or unincorporated association, a trustee or other fiduciary of such trust or a person controlling, controlled by or under common control with the dealer has been guilty of any act or omission that would be a sufficient ground for denying or revoking the registration of an individual dealer.
D. If the registration of a dealer is revoked or denied, that dealer may not file with the commission an application for registration under this chapter or for licensure under chapter 13 of this title for at least one year after the date of the revocation or denial.