Remedies and Administrative Procedures - Administrator Authority
At any time, the Administrator can conduct public or private investigations, within or outside of a state, which the Administrator considers necessary or appropriate to determine whether a person has violated, is violating, or is about to violate a rule, or to aid in the enforcement of regulations of the
- In conducting an investigation, the Administrator can at any time require (or permit) a person to testify, file a statement, or produce a record regarding facts or circumstances of a situation.
- The Administrator can also publish a record that is of direct concern to an action, proceeding, or investigation.
In general, the Administrator has the ability to inspect records within (and outside of) his or her state. The Administrator can also require those being investigated to provide written statements under oath.
- Issue Subpoenas
At any time, the Administrator may issue a subpoena for investigation-related information, if he or she has jurisdiction over the transaction or security in question.
- Other Provisions
In addition to those already listed, the Administrator has the following powers:
- To cooperate in SEC investigations
- To publish information concerning a violation
- To compel testimony regarding a violation, even if such testimony might incriminate the individual
Jurisdiction comes down to where a securities transaction was made and whether a state Administrator has the authority to regulate the activity.
An Administrator does not have jurisdiction over the following:
The Administrator has jurisdiction if an individual/entity attempts to commit fraud in the Administrator's state, whether or not the individual/entity in question is in the state or not.
When it comes to exempt securities transactions, the Administrator is permitted to deny or revoke any specific transaction or security exemption, but cannot enter the order to do so unless prior notice is given to all parties, an opportunity is given for a hearing, and written findings are provided. If the Administrator issues a summary order to deny or revoke pending final determination, he or she must notify all interested parties of the reasons for entering the order and inform them that a hearing will be granted within 15 days of a written request.
Exam Tips and Tricks
An Administrator generally has jurisdiction if a transaction is originated or accepted in his/her state, or if it is directed to the state.