Remedies and Administrative Provisions
Administrator's toolkit
The Administrator may investigate, subpoena records and witnesses, issue cease-and-desist orders, censure, deny, suspend, or revoke a registration, bar an individual, impose civil penalties, order restitution, and refer matters for criminal prosecution.
Grounds for action
Typical grounds include filing false or misleading information, fraud or dishonest practices, insolvency, willful violation of securities law, conviction of a felony or a relevant misdemeanor within the past ten years, an injunction against securities activity, a suspension or order from another state, and failure to supervise. A pending proceeding elsewhere can be enough; no final judgment is required.
Withdrawal and appeals
Withdrawal of a registration becomes effective thirty days after filing, but the Administrator keeps jurisdiction over conduct that occurred while registered and can start a proceeding that stops the withdrawal from taking effect. An aggrieved party gets notice, a hearing, written findings, and then judicial review, typically sought within sixty days.
Traps
A candidate may assume a court conviction is required - it is not; the Administrator acts administratively. Another favorite: the Administrator may not penalize anyone without notice and an opportunity for hearing. Also, a person cannot cure a false Form U4 by amending it after the fact; the original filing remains a ground for action.
Worked example: An agent was convicted of felony theft six years ago, disclosed it on Form U4, and has had a clean record since. Disclosure does not bar the Administrator from denying registration - the conviction falls inside the ten-year lookback, and the conduct is substantially related to securities work.