Ohio § 1707.19

§ 1707.19.

(A)(1) An original license, or a renewal thereof, applied for by a dealer or salesperson

of securities, or by an investment adviser, investment adviser representative, bureau

of workers' compensation chief investment officer, state retirement system investment

officer, or portal operator as defined in section 1707.05 of the Revised Code may, except as provided in division (A)(2) of this section, be refused, and any such

license granted may be suspended and, after notice and hearing in accordance with

Chapter 119. of the Revised Code, may be revoked, by the division of securities, if

the division determines that the applicant or the licensed dealer, salesperson, investment

adviser, investment adviser representative, bureau of workers' compensation chief

investment officer, or state retirement system investment officer: (a) Is not of good business repute; (b) Is conducting an illegitimate or fraudulent business; (c) Is, in the case of a dealer, investment adviser, or portal operator, insolvent; (d) Has knowingly violated any provision of sections 1707.01 to 1707.50 of the Revised Code , or any regulation or order made thereunder; (e) Has knowingly made a false statement of a material fact or an omission of a material

fact in an application for a license, in a description or application that has been

filed, or in any statement made to the division under such sections; (f) Has refused to comply with any lawful order or requirement of the division under section 1707.23 of the Revised Code ; (g) Has been guilty of any fraudulent act in connection with the sale of any securities

or in connection with acting as an investment adviser, investment adviser representative,

bureau of workers' compensation chief investment officer, state retirement system

investment officer, or portal operator; (h) Conducts business in purchasing or selling securities at such variations from the

existing market as in the light of all the circumstances are unconscionable; (i) Conducts business in violation of such rules and regulations as the division prescribes

for the protection of investors, clients, or prospective clients; (j) Has failed to furnish to the division any information with respect to the purchases

or sales of securities within this state that may be reasonably requested by the division

as pertinent to the protection of investors in this state. (k) Has failed to furnish to the division any information with respect to acting as an

investment adviser, investment adviser representative, bureau of workers' compensation

chief investment officer, state retirement system investment officer, or portal operator

within this state that may be reasonably requested by the division. (2) The division of securities shall not refuse to issue an original license to an applicant

under division (A)(1) of this section because of a criminal conviction unless the

refusal is in accordance with section 9.79 of the Revised Code . (B) For the protection of investors the division may prescribe reasonable rules defining

fraudulent, evasive, deceptive, or grossly unfair practices or devices in the purchase

or sale of securities. (C) For the protection of investors, clients, or prospective clients, the division may

prescribe reasonable rules regarding the acts and practices of an investment adviser

or an investment adviser representative. (D) For the protection of investors, the division may prescribe reasonable rules regarding

the acts and practices of a portal operator. (E) Pending any investigation or hearing provided for in sections 1707.01 to 1707.50 of the Revised Code , the division may order the suspension of any dealer's, salesperson's, investment

adviser's, investment adviser representative's, bureau of workers' compensation chief

investment officer's, state retirement system investment officer's, or portal operator's

license by notifying the party concerned of such suspension and the cause for it.  If it is a salesperson whose license is suspended, the division shall also notify

the dealer employing the salesperson.  If it is an investment adviser representative whose license is suspended, the division

also shall notify the investment adviser with whom the investment adviser representative

is employed or associated.  If it is a state retirement system investment officer whose license is suspended,

the division shall also notify the state retirement system with whom the state retirement

system investment officer is employed.  If it is a bureau of workers' compensation chief investment officer whose license

is suspended, the division shall also notify the bureau of workers' compensation. (F)(1) The suspension or revocation of the dealer's license suspends the licenses of all

the dealer's salespersons. (2) The suspension or revocation of the investment adviser's license suspends the licenses

of all the investment adviser's investment adviser representatives.  The suspension or revocation of an investment adviser's registration under section

203 of the “Investment Advisers Act of 1940,” 15 U.S.C. 80b-3 , suspends the licenses of all the investment adviser's investment adviser representatives. (G) It is sufficient cause for refusal, revocation, or suspension of the license in case

of a partnership, partnership association, corporation, or unincorporated association

if any general partner of the partnership, manager of the partnership association,

or executive officer of the corporation or unincorporated association is not of good

business repute or has been guilty of any act or omission which would be cause for

refusing or revoking the license of an individual dealer, salesperson, investment

adviser, investment adviser representative, or portal operator.