The Administrator has the power to deny, revoke or suspend registrations or licenses at any time, if the Administrator feels he/she is acting in the public interest. Moreover, the Administrator has an OBLIGATION to not misuse his/her powers for personal gain.

Exam Tips and Tricks
If the Administrator denies, suspends or revokes registration, such an order must be based on a foundation of facts and conclusions of law. Orders of the Administrator must be made only in the public interest.

In addition to the following items (initiated by the Administrator), a broker-dealer may withdraw its own registration at any time and is effective 30 days after an initial withdrawal application is filed (unless there are pending disciplinary proceedings).

Finally, if a broker-dealer withdraws its registration, and then (within one year) the Administrator finds wrongdoing, the Administrator may still commence disciplinary proceedings.

Denial
The Administrator may deny an application if:

  • it is incomplete, contains any misleading information or omits vital facts;
     
  • within the last 10 years, the applicant was convicted of a securities-related misdemeanor or any felony whatsoever -- regardless of whether it was securities related or not;
     
  • another Administrator already denied registration, or another suspension or revocation order is already in effect;
     
  • the Administrator finds that the applicant is not financially solvent, and/or in a state of bankruptcy. This is more frequently applied to firms than to individuals;
     
  • a court order exists barring the registrant from working in the securities industry; or
     
  • the Administrator deems that the registrant is not qualified for the type of business he/she intends to pursue. However, an Administrator cannot suspend registration if the registrant can materially prove he/she is qualified.

Look Out!
The exam may say that the registrant has "been enjoined", which means that an injunction has been ordered.

Revocation
 

  • An Administrator may revoke registration at any time if any one of the above six items (listed under Denial) are found to be true.
     
  • In addition, the Administrator may revoke the registration of an officer or partner of a firm without crippling the entire firm, although such could also be grounds for revoking the registration of the firm as a larger entity.
     
  • Registration may be revoked from an agent but not the broker-dealer, if the broker-dealer is found to have been competently supervising the agent - even though that broker-dealer was not able to prevent the agent from committing a fraudulent act. However, if the agent's fraudulent activity was the direct result of a broker-dealer's incompetent supervision, then the broker-dealer's registration is at risk as well.

Suspension
Suspension can occur for the same reasons as denial, although pending a hearing, registration may be reinstated. Hearings must be granted within 15 days of the written request of the party subject to the order.

Cancellation
Though not in the NCCUSA's outline of the Series 63 examination, an Administrator may CANCEL an agent's registration if the agent is found to be deceased or unable to perform his/her duties. In short, if for any reason the agent becomes mentally incompetent (legally), the Administrator may cancel registration.

If an agent disappears and cannot be found after a reasonable search, the Administrator may cancel registration.

Cease and Desist
The Administrator may issue a cease and desist order, if it has determined that a particular action is in violation of the USA. Then, if the order is ignored, the Administrator may have a court intervene and issue an injunction against the party in question.



Civil Liabilities

Related Articles
  1. Financial Advisor

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  2. Financial Advisor

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  3. Financial Advisor

    A Day In The Life Of A Real Estate Agent

    While every day is unique for a real estate agent, there are some activities that may be a typical part of an agent's day.
  4. Financial Advisor

    Why Bad Credit Is Bad For Financial Careers

    In order to obtain and maintain a career in the financial industry, it is also important to have a clean credit report.
  5. Financial Advisor

    How to Find the Best Life Insurance Agent

    Choosing a life insurance agent is the first and most important step in obtaining coverage. Buyers should pay attention to five key factors.
  6. Investing

    Do You Need A Real Estate Agent?

    There's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
  7. Financial Advisor

    Understanding Series 63

    Series 63 is a securities license that entitles the holder to sell securities in a particular state.
  8. Investing

    Would You Make A Good Real Estate Broker?

    How to tell if you'd be good in this field. It is a common second career for many people, but isn't a good match for everyone.
  9. Investing

    How To Find The Best Real Estate Agent

    Most people don't have the time, expertise or motivation to go it alone and finding a good real estate agent becomes essential to enjoying a smooth real estate transaction.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center