Remedies and Administrative Procedures - Administrative Actions

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

The USA gives the Administrator very broad powers and applies to offers made either verbally or in writing. The powers apply to broker-dealers, agents, investment advisors and investment advisor representatives.

The Administrator can deny, suspend, or revoke registration if it is in the public interest and if the registrant:

  • files a materially false, incomplete or misleading application.
  • willfully violates any provision of the Uniform Securities Act.
  • is prohibited by court order from engaging in the securities industry.
  • becomes insolvent.
  • fails to pay required fees.
  • is convicted of any felony, or any misdemeanor involving the securities industry.
  • engages in unethical or dishonest business practices.
  • is unqualified due to lack of experience, training or knowledge.
  • fails to properly supervise employees.

However, the Administrator cannot deny, suspend or revoke a registration solely based on a lack of experience if the applicant is otherwise qualified by training or knowledge.


Look Out!
While this list of potential reasons to deny a registration application includes the item "is unqualified due to lack of experience, training or knowledge", note that the paragraph that follows states that the Administrator cannot deny or revoke a registration based on "lack of experience if otherwise qualified by training or knowledge". You\'re likely to be tested on that distinction, so watch for answers such as "the Administrator can deny registration if it is in the public interest and an Investment Advisor (IA) has a degree in finance but no investment advisory experience". That answer would be incorrect, since the IA does have training or knowledge.



Exam Tips and Tricks
If, for any reason, an Administrator decides to take any one of the following three actions (denial, revocation or suspension), he/she must expressly detail the reasoning behind the injunctive act and give the person/entity in question a chance for appeal.


Additional Administrative Powers
Related Articles
  1. Investing Basics

    Brokers and RIAs: One and the Same?

    Brokers and registered investment advisors have some key differences. Here's what you need to know.
  2. Professionals

    Understanding Series 6

    Upon successful completion of the Series 6, an individual will have the qualifications needed to sell open end mutual funds and variable annuities
  3. Professionals

    Top Strategies on How to Become a Stock Broker

    Gunning to be a stock broker and want an edge? Here's some veteran advice.
  4. Trading Systems & Software

    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.
  5. Professionals

    Understanding Series 63

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

    How To Answer Option Questions On The Series 7 Exam

    Learn how to answer option questions on the Series 7 exam. Pass your Series 7 exam with the help of these tips.
  7. Insurance

    Municipal Bond Tips For The Series 7 Exam

    Learn to distinguish between general obligation and revenue bonds to ace this test.
  8. Retirement

    6 Proven Tips For Series 6 Success

    These techniques can help you pass this test without the added stress.
  9. Insurance

    Tips For Passing The Series 6 Exam

    Find out what you can do during the test to make sure you get a passing score.
  10. Professionals

    Banker Or Broker: Which Career Is Right For You?

    Bankers and stock brokers may share similar traits, but there are many differences between the two professions.
RELATED TERMS
  1. Series 6

    A securities license entitling the holder to register as a limited ...
  2. Series 79

    A examination to ensure a candidate is qualified to become a ...
  3. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  4. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  5. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  6. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
RELATED FAQS
  1. If I have only a limited amount of time to study for the Series 6, what should I ...

    The Series 6 Investment Company and Variable Contracts Products Representative Qualification Examination is administered ... Read Full Answer >>
  2. What role does the 'chip cycle' play in the electronics sector?

    There are several highly acclaimed private Series 6 Exam courses in the United States. Many can be completed online. Popular ... Read Full Answer >>
  3. What does passing the Series 6 enable me to do?

    The Series 6, or the Investment Company Products/Variable Contracts Limited Representative, exam is administered by the Financial ... Read Full Answer >>
  4. What are the differences between the Series 6 exam and the Series 7 exam?

    The Financial Industry Regulatory Authority (FINRA) offers a variety of licenses that must be obtained before conducting ... Read Full Answer >>
  5. Do I have to successfully complete the Series 7 exam before I can register for the ...

    There are no prerequisites to register for the Series 63 exam. However, once you have registered for the exam, you must schedule ... Read Full Answer >>
  6. I completed the Series 6, do I have to complete the entire Series 7?

    After having written the Series 6 examination, there would be significant overlap with the Series 7 in areas such as mutual ... Read Full Answer >>
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!