8.11. Termination or Restriction of a Registration

Registration as an investment adviser, broker-dealer, IAR, or agent is by no means permanent. At a bare minimum, state approval to operate can terminate on December 31 of any year simply because a firm forgets to submit renewal paperwork. But an individual or firm’s registration can terminate or be restricted for a variety of other reasons, including:

• Denial. If a state’s administrator has reason to believe an applicant would not serve the best interests of the public (such as if they are unqualified), an application can be denied outright.

• Revocation. If an adviser has acted in a way that has substantially harmed the public, the administrator may permanently revoke the adviser’s registration