- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 55. Alaska Securities Act
- Section 60. Denial, Revocation, Suspension, Cancellation, and Withdrawal of Registration.
previous: Section 50
. Post-Registration Provisions.
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. Registration Requirement.
AS 45.55.060. Denial, Revocation, Suspension, Cancellation, and Withdrawal of Registration.
- (a) The administrator may by order deny, suspend, or revoke a registration if the administrator finds that the order is in
the public interest and that the applicant or registrant or, in the case of a broker-dealer or state investment
adviser, a partner, officer, or director, a person occupying a similar status or performing similar functions, or a
person directly or indirectly controlling the broker-dealer or state investment adviser
- (1) has filed an application for registration that, as of its effective date, or as of a date after filing in the case of
an order denying effectiveness, was incomplete in a material respect or contained a statement that was, in light of the
circumstances under which it was made, false or misleading with respect to a material fact;
- (2) has wilfully or repeatedly violated, or failed to comply with, a provision of this chapter or a regulation or order
under this chapter;
- (3) has been convicted, within the past 10 years, of a misdemeanor involving a security or an aspect of the securities
business or a felony; in this paragraph, "convicted" includes a finding of guilt based on a verdict, judgment, plea of
guilty, or plea of nolo contendere, if the verdict, judgment, or plea has not been reversed, set aside, or withdrawn,
regardless of whether sentence has been imposed;
- (4) is permanently or temporarily enjoined by a court from engaging in or continuing conduct or a practice involving an
aspect of the securities business;
- (5) is the subject of an order of the administrator denying, suspending, or revoking registration as a broker-dealer,
agent, state investment adviser, or investment adviser representative;
- (6) is the subject of an order entered within the past five years by the securities administrator of another state or by
the United States Securities and Exchange Commission denying or revoking registration as a broker-dealer, agent, state
investment adviser, investment adviser representative, or the substantial equivalent of those terms as defined in this
chapter, or is the subject of an order of the United States Securities and Exchange Commission suspending or expelling
the person from a national securities exchange or national securities association registered under 15 U.S.C. 78a -
78lll (Securities Exchange Act of 1934), or is the subject of a United States Postal Service fraud order; but the
administrator may not
- (A) institute a revocation or suspension proceeding under this paragraph more than one year from the date of the order
relied on; and
- (B) enter an order under this paragraph on the basis of an order under another state act unless that order was based on
facts that would currently constitute a ground for an order under this section;
- (7) has engaged in dishonest or unethical practices or conduct in the securities or investment advisory business;
- (8) is insolvent, in the sense that liabilities exceed assets, that obligations cannot be met as they mature, or that the
business cannot be continued safely for the customers of the applicant or registrant, but the administrator may not
enter an order against a broker-dealer or state investment adviser under this paragraph without a finding of insolvency
as to the broker-dealer or state investment adviser;
- (9) is not qualified on the basis of such factors as training, experience, and knowledge of the securities business,
except as otherwise provided in (d) of this section;
- (10) has failed to comply with the requirements of AS 45.55.050
to make, keep, or produce records required by the administrator, or to file financial reports or other information the
administrator by regulation or order may require; or
- (11) is a person whose license renewal is denied under AS 14.43.148
or whose license issuance or renewal is denied under AS 25.27.244
- (b) The administrator may by order deny, suspend, or revoke any registration if the administrator finds that the order is
in the public interest and that the applicant or registrant
- (1) has failed reasonably to supervise agents if the applicant or registrant is a broker-dealer, or has failed reasonably
to supervise employees and investment adviser representatives if the applicant or registrant is a state investment
- (2) has failed to pay the proper filing fee; but the administrator may enter only a denial order under this paragraph, and
the administrator shall vacate the order when the deficiency is corrected.
- (c) The administrator may not institute a suspension or revocation proceeding on the basis of a fact or transaction known
to the administrator when registration became effective unless the proceeding is instituted within the next 30 days.
- (d) The following provisions govern the application of (a)(9) of this section:
- (1) the administrator may not enter an order against a broker-dealer on the basis of the lack of qualification of a person
- (A) the broker-dealer if the broker-dealer is an individual; or
- (B) an agent of the broker-dealer;
- (2) the administrator may not enter an order against a state investment adviser on the basis of the lack of qualification
of a person other than
- (A) the state investment adviser if the state investment adviser is an individual; or
- (B) an investment adviser representative who represents the state investment adviser in doing any of the acts that make
the state investment adviser a state investment adviser;
- (3) the administrator may not enter an order solely on the basis of lack of experience if the applicant or registrant is
qualified by training or knowledge or both;
- (4) the administrator shall consider that an agent who will work under the supervision of a registered broker-dealer need
not have the same qualifications as a broker-dealer;
- (5) the administrator shall consider that a state investment adviser is not necessarily qualified solely on the basis of
experience as a broker-dealer or agent; if the administrator finds that an applicant for initial or renewal
registration as a broker-dealer is not qualified as a state investment adviser, the administrator may by order
condition the applicant's registration as a broker-dealer upon the applicant's not transacting business in this state
as a state investment adviser;
- (6) the administrator may by regulation provide for an examination, which may be written or oral or both, to be taken by
any class of or all applicants, including applicants for registration as investment adviser representatives; however,
examinations required by this paragraph are not required of a registrant under this chapter who was doing business in
this state and was a resident of this state on May 9, 1959.
- (e) The administrator may by order summarily postpone or suspend registration pending final determination of a proceeding
under this section. Upon the entry of the order, the administrator shall promptly notify the applicant or registrant,
and the employer or prospective employer if the applicant or registrant is an agent, that it has been entered and of
the reasons for it and that within 15 days after the receipt of a written request the matter will be set for hearing.
If no hearing is requested and none is ordered by the administrator, the order remains in effect until it is modified
or vacated by the administrator. If a hearing is requested or ordered, the administrator, after notice of and
opportunity for hearing, may modify or vacate the order or extend it until final determination.
- (f) If the administrator finds that a registrant or applicant for registration no longer exists or has ceased to do
business as a broker-dealer, agent, state investment adviser, or investment adviser representative, or is subject to an
adjudication of mental incompetence or to the control of a committee, conservator, or guardian, or cannot be located
after reasonable search, the administrator may by order cancel the registration or application.
- (g) Withdrawal from registration as a broker-dealer, agent, state investment adviser, or investment adviser representative
becomes effective 30 days after receipt of an application to withdraw or within a shorter period of time as the
administrator may determine, unless a revocation or suspension proceeding is pending when the application is filed or a
proceeding to revoke or suspend or to impose conditions upon the withdrawal is instituted within 30 days after the
application is filed. If a proceeding is pending or instituted, withdrawal becomes effective at the time and upon the
conditions as the administrator by order determines. If a proceeding is not pending or instituted and withdrawal
automatically becomes effective, the administrator may nevertheless institute a revocation or suspension proceeding
under (a)(2) of this section within one year after withdrawal is effective and enter a revocation or suspension order
as of the last date on which registration was effective.
- (h) An order may not be entered under any part of this section except the first sentence of (e) of this section without
(1) appropriate prior notice to the applicant or registrant as well as the employer or prospective employer if the
applicant or registrant is an agent, (2) opportunity for hearing, and (3) written findings of fact and conclusions of
law. To the extent AS 44.62 (Administrative Procedure Act) is
not in conflict herewith, it applies to all procedures.
Article 03. REGISTRATION OF SECURITIES
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