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:
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 uncons
Free access — add to your briefcase to read the full text and ask questions with AI
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:
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.