Series 63: Administrative Actions

Administrative Actions

A state securities administrator has a bunch of tools at its disposal to ensure that securities professionals, firms, and issuers operating in their state do what they’re supposed to. Generally, the first step in any action is for the administrator to require someone to either testify in person or supply needed information in written form. If a person or firm fails to do this, the administrator may do one or more of the following:

• • Hold the person in contumacy
• • Order the person to appear and testify before the administrator (even if it would require them to incriminate or provide evidence against themselves)
• • Request that an appropriate court issue an injunction, including restricting or prohibiting the offer or sale of securities or the providing of investment advice
• • Issue a cease and desist order (requires professionals to cease all securities related transactions immediately without a hearing)
• • Bring an action before a court to enforce compliance with the Uniform Securities Act
• • Issue an order revoking, denying, suspending, or canceling a registration or license