(a) The Administrator may by order deny, suspend, or revoke any registration if he finds (1) that the order is in the public interest and (2) that the applicant or registrant or, in the case of a broker-dealer or investment adviser, any partner, officer, or director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the broker-dealer or investment adviser.

(A) has filed an application for registration which as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in the light of the circumstances under which it was made, false or misleading with respect to any material fact;

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(B) has wilfully violated or wilfully failed to comply with any provision of this Act or a predecessor act or any rule or order under this Act or a predecessor act;

(C) has been convicted, within the past ten (10) years, of any misdemeanor involving a security or any aspect of the securities business, or any felony having as one of its necessary elements a fraudulent act or an act of dishonesty in the solicitation of, acceptance, custody, or payment of money or property or a breach of trust;
(D) is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business;
(E) is the subject of an order of the Administrator denying, suspending, or revoking registration as a broker-dealer, agent, or investment adviser;
(F) is the subject of an order entered within the past five (5) years by the securities administrator of any other state or by the Securities and Exchange Commission denying or revoking registration as a broker-dealer, agent, or investment adviser, or the substantial equivalent of those terms as defined in this Act, or is the subject of an order of the Securities and Exchange Commission suspending or expelling him from a national securities exchange or national securities association registered under the Securities Exchange Act of 1934, or is the subject of a United States Post Office fraud order; but (i) the Administrator may not institute a revocation or suspension proceeding under clause (F) more than one (1) year from the date of the order relied on, and (ii) he may not enter an order under clause (F) on the basis of an order under another state act, unless that order was based on facts which would currently constitute a ground for an order under this section;

(G) has engaged in dishonest or unethical practice in the securities business;

(H) is insolvent, either in the sense that his liabilities exceed his assets, or in the sense that he cannot meet his obligations as they mature; but the Administrator may not enter an order against a broker- dealer or investment adviser under this clause without a findings of insolvency as to the broker-dealer or investment adviser; or

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(I) is not qualified on the basis of such factors as training, experience, and knowledge of the securities business, except as otherwise provided in subsection (b).

The Administrator may by order deny, suspend, revoke any registration if he finds (1) that the order is in the public interest and (2) that the applicant or registrant.

(J) has failed reasonably to supervise his agents if he is a broker- dealer, or his employees if he is an investment advisor; or
(K) has failed to pay the proper filing fee; but the Administrator may enter only a denial order under this clause, and he shall vacate any such order when the deficiency has been corrected.
The Administrator may not institute a suspension or revocation proceeding on the basis of a fact or transaction known to him when registration became effective unless the proceeding is instituted within the next thirty (30) days.

(b) The following provisions govern the application of § 46204 (a)(2)(I):

(1) The Administrator may not enter an order against a broker- dealer on the basis of the lack of qualification of any person other than (A) the broker-dealer himself if he is an individual or (B) an agent of the broker-dealer.

(2) The Administrator may not enter an order against an investment adviser on the basis of the lack of the qualification of any person other than (A) the investment adviser himself if he is an individual or (B) any other person who represents the investment adviser in doing any of the acts which make him an investment adviser.

(3) The Administrator may not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge or both.

(4) The Administrator shall consider that an agent who will work under the supervision of a registered broker-dealer need not have the same qualifications as a broker-dealer.

(5) The Administrator shall consider that an investment adviser is not necessarily qualified solely on the basis of experience as a broker-

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dealer or agent. When he finds that an applicant for initial or renewal registration as a broker-dealer is not qualified as an investment adviser, he may by order condition the applicant’s registration as a broker- dealer upon his not transacting business in this state as an investment adviser.
(6) The Administrator may by rule provide for an examination, which may be written or oral or both, to be taken by any class of, or all applicants, as well as persons who represent or will represent an investment adviser in doing any of the acts which makes him an investment adviser.

(c) The Administrator may by order summarily postpone or suspend registration pending final determination of any proceeding under this section. Upon the entry of the order, the Administrator shall promptly notify the applicant or registrant, as well as the employer or prospective employer if the applicant or registrant is an agent, that it has been entered and of the reasons therefor and that within fifteen (15) days after the receipt of a written request, the matter will be set down for hearing. If no hearing is requested and none is ordered by the Administrator, the order will remain in effect until it is modified or vacated by the Administrator. If a hearing is requested or ordered, the Administrator, after notice of and opportunity for hearing, may modify or vacate the order or extend it until final determination.

(d) If the Administrator finds that any registrant or applicant for registration is no longer in existence or has ceased to do business as a broker-dealer, agent, or investment adviser, or is subject to an adjudication of mental incompetence or to the control of a committee, conservator, or guardian, or cannot be located after reasonable search, the Administrator may by order cancel the registration or application.
(e) Withdrawal from registration as a broker-dealer, agent, or investment adviser becomes effective thirty(30) days after receipt of an application to withdraw, or within such shorter period of time as the Administrator may determine, unless a revocation or suspension proceeding is pending when the application is filed or a proceeding to revoke or suspend or to impose conditions upon the withdrawal is instituted within thirty (30) days after the application is filed. If a proceeding is pending or instituted, withdrawal becomes effective at such time and upon such conditions as the Administrator by order determines. If no proceeding is pending or instituted, and withdrawal automatically becomes effective, the

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Administrator may nevertheless institute a revocation or suspension proceeding under § 46204(a)(2)(B) within one (1) year after withdrawal became effective and enter a revocation or suspension order as of the last date on which registration was effective.

(f) No order may be entered under any part of this section except the first sentence of subsection (c) without (1) appropriate prior notice to the applicant or registrant (as well as the employer or prospective employer if the applicant or registrant is an agent), (2) opportunity for hearing, and (3) written findings of fact and conclusions of law.

SOURCE: GC § 45205 as renumbered by P.L. 16-65:4. Paragraph (C) of Subsection
(a) of GC § 45204 was amended by P.L. 13-187:221.