Oklahoma § 71-204 - Repealed by Laws 2003, c. 347, § 53, eff. July 1, 2004

§ 71-204. Repealed by Laws 2003, c. 347, § 53, eff. July 1, 2004

NOTE: Prior to repeal, this section was amended to read as follows:

(a) The Administrator may issue a final order denying

effectiveness to, or suspending or revoking the effectiveness of,

any registration, or condition or limit registration of an applicant

or registrant, or impose any sanction authorized by Section 406 of

this title 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 investment adviser, any partner, officer, or

director, any person occupying a similar status or performing

similar functions, or any person directly or indirectly controlling

the broker-dealer or investment adviser:

(1) has filed an application for registration which as of its

effective date, or as of any date after filing in the case of an

order denying effectiveness, was incomplete in any material respect

or contained any statement which was, in light of the circumstances

under which it was made, false or misleading with respect to any

material fact;

(2) has willfully violated or willfully failed to comply with

any provision of the Oklahoma Securities Act or a predecessor act or

any rule or order under this act or a predecessor act;

Oklahoma Statutes - Title 71. Securities

(3) has been convicted, within the past ten (10) years, of any

misdemeanor involving a security or any aspect of the securities

business, or any felony;

(4) is permanently or temporarily enjoined by any court of

competent jurisdiction from engaging in or continuing any conduct or

practice involving any 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,

investment adviser, or investment adviser representative or is the

subject of an order of the Administrator issued pursuant to Section

406 of this title;

(6) is the subject of an order or other adjudication or

determination entered within the past five (5) years by the

securities administrator of any other state or by the United States

Securities and Exchange Commission or by any other governmental

securities agency denying, suspending or revoking registration as a

broker-dealer, agent, investment adviser or investment adviser

representative or the substantial equivalent of those terms as

defined in the Oklahoma Securities Act, or is the subject of an

order or other adjudication or determination entered within the past

five (5) years by the securities administrator of any other state or

by the United States Securities and Exchange Commission or by any

other governmental securities agency barring the person from

association with any other broker-dealer or investment adviser, or

is the subject of an order suspending or expelling the person from a

national or international securities exchange or national or

international securities association, or is the subject of an order

or other adjudication or determination of or by the National

Association of Securities Dealers, Inc., or any other selfregulatory organization, suspending, canceling, revoking, or barring

the person from membership in said organization or barring the

person from association with any other member of said organization,

or is the subject of a United States Post Office fraud order; but:

(A) the Administrator may not institute a revocation or

suspension proceeding under this subsection more than

one (1) year from the date of the order relied on; and

(B) may not enter an order under this subsection on the

basis of an order under another state act unless that

order was based on facts which, but for the situs

would currently constitute a ground for an order under

this section;

(7) is the subject of a cease and desist order entered after

notice and opportunity for hearing by the Administrator, the

securities agency or administrator of another state, the United

States Securities and Exchange Commission or the Commodity Futures

Trading Commission;

Oklahoma Statutes - Title 71. Securities

(8) has engaged in dishonest or unethical practices in the

securities business;

(9) is insolvent, either in the sense that liabilities exceed

assets or in the sense that the person cannot meet obligations as

they mature; but the Administrator may not enter an order against a

broker-dealer or investment adviser under this paragraph without a

finding of insolvency as to the broker-dealer or investment adviser;

(10) is not qualified on the basis of such factors as training,

experience and knowledge of the securities business, except as

otherwise provided in subsection (c) of this section; or

(11) has willfully violated any rule of a national or

international securities exchange or a national or international

securities association with respect to any customer or transaction

in this state;

(12) has failed to exercise reasonable supervision of its

agents if a broker-dealer or a designated principal, or of its

investment adviser representatives if an investment adviser to

ensure compliance with the Oklahoma Securities Act;

(13) has failed to pay the proper filing fee; but the

Administrator may enter only a denial order under this paragraph,

and shall vacate any such order when the deficiency has been

corrected; or

(14) refuses to allow or otherwise impedes the Administrator

from conducting an examination under subsection (d) of Section 203

of this title, refuses access to any registrant’s office to conduct

such examination, or refuses to provide copies of the records

referred to in subsection (a) of Section 203 of this title.

(b) The Administrator may not institute a suspension or

revocation proceeding based solely on material facts actually known

by the Administrator unless an investigation or proceeding is

instituted within one (1) year after the Administrator actually knew

the material facts.

(c) The Administrator's determination that an applicant or

registrant lacks qualification under paragraph (10) of subsection

(a) of this section is limited by the following provisions:

(1) The Administrator may not enter an order against a brokerdealer on the basis of the lack of qualification of any person other

than the broker-dealer if the broker-dealer is an individual; or an

agent of the broker-dealer.

(2) The Administrator may not enter an order against an

investment adviser on the basis of the lack of qualification of any

person other than the investment adviser if the investment adviser

is an individual or an investment adviser representative of the

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.

Oklahoma Statutes - Title 71. Securities

(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 an investment adviser

is not necessarily qualified solely on the basis of experience as a

broker-dealer or agent.

(6) The Administrator may by rule provide for an examination,

which may be written or oral or both, to be taken by any class of or

all applicants.

(d) (1) If the Administrator makes written findings of fact to

support the conclusion that the public interest will be harmed by

delay in issuing an order pursuant to subsection (a) of this

section, the Administrator may by order summarily postpone or

suspend registration pending final determination of any proceeding

under this section.

(2) Upon the entry of the summary order, the Administrator

shall promptly notify the applicant or registrant, as well as the

employer or prospective employer if the applicant or registrant is

an agent or investment adviser representative:

(A) that the summary order has been entered and the

reasons therefor;

(B) that the person subject to the summary order, if

desiring a hearing, must make written request for a

hearing to the Administrator within fifteen (15) days

after service of the notice is effective;

(C) that within fifteen (15) days after receipt by the

Administrator of a written request the matter will be

set for hearing to determine whether the summary order

should be modified, vacated or extended pending final

determination of any proceeding under subsection (a)

of this section; and

(D) that a hearing shall be commenced within fifteen (15)

days of the matter being set for hearing.

(3) The summary order shall remain in effect until the

conclusion of the hearing on the summary order unless the

Administrator or the Administrator’s designee extends the summary

order pending a final determination of any proceeding under

subsection (a) of this section. If no hearing is requested within

thirty (30) days after service of the summary order and none is

ordered by the Administrator, the summary order becomes final by

operation of law. If a request for hearing on the summary order is

timely made and if the hearing is not commenced by the Administrator

within the time limit set forth herein, the summary order shall

dissolve and a final order shall not be issued pursuant to

subsection (a) of this section except upon reasonable notice and

opportunity for a hearing.

Oklahoma Statutes - Title 71. Securities

(e) If the Administrator finds that any registrant or applicant

for registration is no longer in existence or has ceased to do

business as a broker-dealer, agent, 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.

(f) Withdrawal from registration as a broker-dealer, agent,

investment adviser or investment adviser representative becomes

effective sixty (60) days after receipt of an application to

withdraw or within such 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 sixty (60) days after the application is filed. If a

proceeding is pending or instituted, withdrawal becomes effective at

such time and upon such conditions as the Administrator by order

determines. If no proceeding is pending or instituted and

withdrawal automatically becomes effective, the Administrator may

nevertheless institute a proceeding under paragraph (2) of

subsection (a) of this section within one (1) year after withdrawal

became effective and enter an order as of the last date on which

registration was effective.

(g) Except as provided in paragraph (1) of subsection (d) of

this section or unless the right to notice and hearing is waived by

the person against whom the final order is to be issued, no order

may be issued under this section without notice and opportunity for

hearing as required by the Administrative Procedures Act. If the

person to whom such notice is addressed does not request a hearing

within fifteen (15) days after the service of said notice is

effective, a final order as provided in subsection (a) of this

section may be issued.

Added by Laws 1959, p. 332, § 204, eff. July 1, 1959. Amended by

Laws 1963, c. 280, § 1, emerg. eff. June 18, 1963; Laws 1985, c.

287, § 3, emerg. eff. July 23, 1985; Laws 1988, c. 108, § 11, eff.

Nov. 1, 1988; Laws 1990, c. 71, § 2, eff. Sept. 1, 1990; Laws 1992,

c. 241, § 10, eff. July 1, 1992; Laws 1995, c. 196, § 7, eff. July

1, 1995; Laws 1997, c. 279, § 7, eff. July 1, 1997; Laws 1998, c.

152, § 5, eff. July 1, 1998; Laws 1999, c. 109, § 2, eff. July 1,

1999; Laws 2003, c. 493, § 3, eff. Nov. 1, 2003.