Study guide
5.3 Administrative Orders
Series 63 Uniform Securities Agent State Law
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1 Introduction
About the Series 63 Exam How to Use This Guide
2 Chapter 1: USA Definitions
1.1 Key Terms Overview 1.2 Definition of Person 1.3 Definition of Security 1.4 Offer and Sale 1.5 Exclusions from Definitions
3 Chapter 2: Registration of Persons
2.1 Broker-Dealer Registration 2.2 Broker-Dealer Exemptions and Exclusions 2.3 Agent Registration 2.4 Agent Exemptions and Exclusions 2.5 Investment Adviser and IAR Registration 2.6 IA and IAR Exemptions
4 Chapter 3: Registration of Securities
3.1 Registration Methods Overview 3.2 Registration by Coordination 3.3 Registration by Qualification 3.4 Registration by Filing (Notice Filing) 3.5 Exempt Securities and Transactions
5 Chapter 4: Fraudulent and Unethical Practices
4.1 Anti-Fraud Provisions 4.2 Prohibited Business Practices 4.3 Churning and Unauthorized Trading 4.4 Misrepresentation and Omissions 4.5 Market Manipulation 4.6 Insider Trading and Front-Running
6 Chapter 5: Administrative Provisions
5.1 State Administrator Powers 5.2 Investigations and Subpoenas 5.3 Administrative Orders 5.4 Cease and Desist and Injunctions 5.5 Criminal and Civil Penalties
5.3 Administrative Orders
Key Takeaways Explain This Topic AI
Denial, suspension, and revocation require notice and a hearing.
Cancellation is administrative and needs no hearing.
Administrator actions must be in the public interest.
Hearings must be held within 15 days of request.
Appeals must be filed within 60 days of an order.
Last updated: January 2026
The State Administrator has authority to issue various administrative orders affecting the registration status of securities professionals. Understanding the different types of orders and when each applies is essential for the Series 63 exam.
Types of Administrative Orders
The Administrator can issue four main types of orders affecting registration:
Order Type Description Hearing Required?
- Denial Refuse to grant initial registration Yes (if requested)
- Suspension Temporarily halt registration Yes (if requested)
- Revocation Permanently terminate registration Yes (if requested)
- Cancellation Terminate registration for administrative reasons No
- Denial of Registration
The Administrator may deny an application for registration if the applicant:
- Has been convicted of a securities-related felony within the past 10 years
- Has been convicted of any felony involving dishonesty within the past 10 years
- Is subject to an order from another securities regulator
- Has engaged in dishonest or unethical practices
- Is not qualified by training, experience, or knowledge
- Is insolvent (for broker-dealers and investment advisers)
- Has willfully violated the USA or rules
Exam Tip : The Administrator can deny registration for lack of qualification due to insufficient training, experience, or knowledge—but not for lack of experience alone.
Suspension of Registration
Suspension temporarily halts a registration. The person cannot conduct securities business during the suspension period.
- Grounds for Suspension
- Same grounds as denial
- Failure to pay required fees
- Failure to comply with conditions of registration
- Violation of the USA or rules
- Duration
Suspensions may be for a specified period or until conditions are met (e.g., payment of fees, completion of training).
Revocation of Registration
Revocation permanently terminates a registration. This is the most severe administrative action.
- Grounds for Revocation
- Same grounds as denial and suspension
- Particularly serious or repeated violations
- Failure to comply with a prior order
- Conviction of a felony during the registration period
- Cancellation of Registration
Cancellation differs from the other orders—it is used for administrative reasons, not as punishment.
Grounds for Cancellation
- Ground Example
- Ceased to exist Business has closed
- No longer engaged Person no longer working in securities
- Unable to locate Cannot find the registrant
- Death or mental incapacity Individual registrant
- Voluntary request Registrant requests cancellation
Key Point : Cancellation is NOT a punitive action. It simply terminates a registration that is no longer needed or valid. No hearing is required.
Withdrawal from Registration
A registered person may voluntarily withdraw from registration by filing a proper application. However:
- Withdrawal becomes effective 30 days after filing (unless earlier date granted)
- The Administrator may delay withdrawal if proceedings are pending
- Withdrawal does not prevent future disciplinary action
- The "Public Interest" Requirement
Before issuing a denial, suspension, or revocation, the Administrator must find that taking the action is in the public interest . This prevents arbitrary or capricious enforcement.
- Hearing Requirements
- Orders Requiring Notice and Opportunity for Hearing
The Administrator must provide prior notice and opportunity for a hearing before:
- Denial of registration
- Suspension of registration
- Revocation of registration
- Procedure
- Step Timing
- Written notice Promptly upon decision to take action
- Request for hearing Applicant may request within specified period
- Hearing Must be held within 15 days of request
- Final order Issued after hearing
- No Hearing Required
The Administrator may take certain actions without prior notice or hearing:
- Cancellation of registration
- Stop orders for securities registration
- Summary suspension (in emergencies, with immediate post-order hearing rights)
- Grounds for Action (Summary)
- Ground Denial Suspension Revocation
- Securities-related felony (10 years) Yes Yes Yes
- Dishonesty felony (10 years) Yes Yes Yes
- Order from another regulator Yes Yes Yes
- Unethical practices Yes Yes Yes
- Lack of qualification Yes Yes Yes
- Insolvency (BD/IA) Yes Yes Yes
- Willful violation of USA Yes Yes Yes
- Failure to pay fees No Yes Yes
- Appeals
A person aggrieved by an Administrator's order may appeal:
- Appeal must be filed within 60 days of the order
- Appeal goes to the appropriate court
- The order may be stayed pending appeal
- Court reviews whether the Administrator acted properly
- Key Takeaways
- Denial, suspension, and revocation require notice and opportunity for hearing
- Cancellation is administrative (not punitive) and requires no hearing
- Grounds include felonies, unethical practices, lack of qualification, and regulatory orders
- Administrator must find action is in the "public interest"
- Hearings must be held within 15 days of request
- Appeals must be filed within 60 days of the order
- Withdrawal becomes effective 30 days after filing