Chapter 8 Part 2 Flashcards Preview

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Flashcards in Chapter 8 Part 2 Deck (20)
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1
Q

The Administrator must always consider the

A

public’s best interest when rendering decisions or making amendments

2
Q

Administrators may either

A

grant registration, limit the activities of a registrant, or institute proceedings to deny a registration.

3
Q

If a registration is already granted and the Administrator finds it in the best interest of the public, he may also

A

Suspend a registration; revoke a registration; Bar a registrant from association with a registered broker-dealer or investment adviser

4
Q

The Administrator may postpone or suspend registration pending a final determination of the matter. The applicant and the employing broker-dealer or investment adviser must be notified of the action, the

A

reasons for the action, and the fact that a hearing will be scheduled within 15 days of a written request

5
Q

the Administrator may deny, suspend, revoke, cancel, or withdraw the registration of any registrant that has been the subject of a foreign

A

securities regulator’s disciplinary action within the past five years.

6
Q

the Administrator may deny or revoke the registration of a particular

A

paitner, officer, or director without disturbing the status of the firm.

7
Q

if a broker-dealer files for bankruptcy, the Administrator must first request a court hearing to obtain

A

an order appointing the Administrator to act as the receiver. The receiver will conduct an orderly liquidation of the firm’s assets and attempt lo satisfy creditor claims. Customer accounts will be insured under SIPC

8
Q

The disqualification of an agent of a broker-dealer or of any employee of an investment adviser may not be used against the firm unless the employee’s disqualification is based on

A

lack of supervision

9
Q

the disqualification of a director, officer, or partner, as distinct from an ordinary agent, can be the basis for

A

a proceeding against the firm’s registration, if the Administrator feels that it is in the public interest to do so

10
Q

Proceedings by the Administrator must be accomplished with

A

appropriate notice to the registrant, the opportunity for a hearing, written findings of fact, and conclusions of law

11
Q

When the Administrator makes a determination after a hearing, the decision must be

A

in writing, along with the legal basis of the decision and the facts that support the case. If a registrant disagrees with either the legal reasoning or the truth of the facts given, this can be used as the basis for an appeal

12
Q

Although the registrant may appeal these actions, activities within the state will be suspended until a

A

decision is rendered by a court of competent jurisdiction

13
Q

Any appeal must be filed with a state court within

A

60 days. However, the appeal does not stay (suspend) the Administrator’s order

14
Q

The power to alter stale blue-sky laws lies with

A

the slate legislature

15
Q

However, if Administrators believe it is in the public interest, they have the power to

A

amend or repeal any rule, form, or order related to registration, reports, definitions, terrns, rules interpreting the law, and other activities necessary to carry out the provisions of the USA

16
Q

The Administrator has the power to initiate

A

investigations to determine whether any provisions of the Act are about to be violated, or have been violated. In pursuing investigations, the Administrator may require written statements under oath detailing facts and circun1stances concerning the suspected violation. The investigations may take place in the Administrator’s home state or in another state, and may be either public or private. The USa refers to the Administrator’s overall power and ability to investigate as her inspectorial power

17
Q

the Administrator may also

A

“subpoena witnesses and require that they produce materials relevant to the inquiry. No one may be prosecuted, or retaliated against, for testifying or providing information
pursuant to a subpoena. Adtninistrators may issue subpoenas in their own state at the request of a securities agency or the Administrator of another state, as long as the allegations under investigation would constitute a potential violation in the Administrator’s home state”

18
Q

No one is excused from responding to a

A

subpoena. If the subpoena is ignored, the Administrator may request enforcement by the court. Failure to obey the court’s orders is punishable as contempt of court

19
Q

A cease and desist order is a

A

“demand to halt an activity immediately, or face legal action. Such orders
are effective on the date of issuance. The Achninislrator may issue a cease and desist order against any person who has engaged in, is engaging in, or is about to engage in any act or practice constituting a violation of the USA.”

20
Q

Cease and desist orders may be issued

A

without a hearing and must include a statement as to whether the Administrator will seek a civil penalty or the costs of the investigation. The statement must also include the reasons for the order and a notice that a hearing will be held within 15 days after a written request is made

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