§ 44-1962 — Grounds for denial, revocation or suspension of registration of salesman; administrative remedies

Arizona § 44-1962

• Jurisdiction: Arizona
• Title 44: Arizona Revised Statutes
• Ch. 12: SALES OF SECURITIES
• Art. 10: Denial, Revocation or Suspension of Registration as Dealer or Salesman

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A. After a hearing or notice and opportunity for a hearing as provided by 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 salesman if the commission finds that:

1. The application for registration of the salesman, any statement, document or other exhibit filed with the application or any supplement or amendment to the application is incomplete, inaccurate or misleading.

2. The salesman has violated this chapter or any rule or order of the commission under this chapter.

3. The salesman has failed to file with the commission any record, report 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 salesman's affairs.

4. The salesman is not qualified by training or experience.

5. The salesman is not employed by a registered dealer.

6. The salesman has been convicted within ten years preceding the date of filing the application for registration as a salesman, 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.

7. The salesman 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.

8. The salesman 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.

9. The salesman has been guilty of any fraudulent act or practice in connection with the purchase or sale of securities.

10. The salesman has engaged in dishonest or unethical practices in the securities industry.

11. The salesman has failed to reasonably supervise salesmen under the salesman's supervisory control.

12. The salesman 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 salesman has engaged in an act, practice or transaction described in subsection A, paragraph 10 or 11 of this section, the commission may do one or more of the following:

1. Assess administrative penalties.

2. Order the salesman 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. If the registration of a salesman is revoked or denied, that salesman 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.