Series 63: Disciplinary Action Against An IAR

Disciplinary Action Against an IAR

As previously discussed with investment advisers, lifetime registration as an investment adviser representative is by no means guaranteed after someone is initially approved. State approval as an IAR terminates on December 31st of each year. If not properly renewed, an IAR’s registration is revoked. An IAR’s registration can terminate or be restricted for a variety of other reasons including:

• • Denial – Naturally, if a state’s administrator has reason to believe an applicant would not serve the best interests of the public (such as if he or she is unqualified), an application can be denied outright.
• • Revocation – If an IAR has acted in a way that has substantially harmed the public, the administrator may permanently revoke the adviser’s registration in that state.
• • Suspension – For less serious infractions, such as a failure to file proper paperwork, the administrator may temporarily suspend an IAR’s registration.
• • Withdrawal – An adviser may terminate an IAR’s registration at any time by filing Form U-5. The withdrawal request becomes effective 30 days after it is submitted. Once registration has been withdrawn, the applicant remains under the Administrator’s jurisdiction for a year.