409.863. Licenses--denial, suspension, revocation, limitations, cancellation--grounds.
Licenses--denial, suspension, revocation, limitations,cancellation--grounds.
409.863. 1. The commissioner may, by order, deny, suspend, or revokeany license, limit the activities which an applicant or licensed person mayperform in this state, conserve any applicant or licensed person, or bar anyapplicant or licensed person from association with a licensed commoditybroker-dealer, if the commissioner finds that the order is in the publicinterest and that the applicant or licensed person or, in the case of acommodity broker-dealer any partner, officer, or director, any personoccupying a similar status or performing similar functions, or any persondirectly or indirectly controlling the commodity broker-dealer:
(1) Has filed an application for licensing with the commissioner, or hisdesignee, which, as of its effective date, or as of any date after filing inthe case of an order denying effectiveness, was incomplete in any materialrespect or contained any statement which was, in light of the circumstancesunder which it was made, false or misleading with respect to any materialfact;
(2) Has violated or failed to comply with a provision of sections409.800 to 409.863 or a rule or order promulgated or issued under sections409.800 to 409.863;
(3) Is the subject of an adjudication or determination within the lastfive years by a securities agency or administrator or court of competentjurisdiction that the person has willfully violated the Securities Act of1933, the Securities Exchange Act of 1934, the Investment Advisers Act of1940, the Investment Company Act of 1940, or the Commodity Exchange Act, orthe securities law of any other state, but only if the acts constituting theviolation of that state's law would constitute a violation of sections 409.800to 409.863 had the acts taken place in this state;
(4) Has, within the last ten years, pled guilty or nolo contendere to,or been convicted of, any crime indicating a lack of fitness to engage in theinvestment commodities business;
(5) Is permanently or temporarily enjoined by any court of competentjurisdiction from engaging in, or continuing, any conduct or practicedemonstrating* a lack of fitness to engage in the investment commoditiesbusiness;
(6) Is the subject of an order of the commissioner denying, suspending,or revoking the person's license as a commodity or securities broker-dealer,sales representative, or investment adviser;
(7) Is the subject of any of the following orders which are currentlyeffective and which were issued within the last five years:
(a) An order by the securities agency or administrator of another state,Canadian province or territory, or the Securities and Exchange Commission,entered after notice and opportunity for hearing, denying, suspending, orrevoking the person's license as a commodities or securities broker-dealer,sales representative, or investment adviser, or the substantial equivalent ofthose terms;
(b) A suspension or expulsion from membership in or association with aself-regulatory organization registered under the Securities and Exchange Actof 1934 or the Commodity Exchange Act;
(c) A United States Postal Service fraud order;
(d) A cease and desist order entered after notice and opportunity forhearing by the commissioner or the securities agency or administrator of anyother state, Canadian province or territory, the Securities and ExchangeCommission, or the Commodity Futures Trading Commission;
(e) An order entered by the Commodity Futures Trading Commissiondenying, suspending, or revoking registration under the Commodity ExchangeAct;
(8) Has engaged in any unethical or dishonest conduct or practice in theinvestment commodities or securities business;
(9) Is insolvent, either in the sense that liabilities exceed assets, orin the sense that obligations cannot be met as they mature;
(10) Is not qualified on the basis of such factors as training,experience, and knowledge of the securities business, which determinationshall be governed and limited by the provisions of subsection 3 of thissection;
(11) Has failed reasonably to supervise sales representatives oremployees; or
(12) Has failed to pay the proper filing fee within thirty days afterbeing notified by the commissioner of the deficiency. The commissioner shallvacate any order made under this subdivision when such deficiency has beencorrected.
2. The commissioner may not institute a suspension or revocationproceeding on the basis of a fact or transaction disclosed in the licenseapplication unless the proceeding is instituted within the next ninety daysfollowing issuance of the license.
3. If the public interest or the protection of investors so requires,the commissioner may, by order, summarily suspend a license or postpone theeffective date of a license. Upon the entry of the order the commissionershall promptly notify the applicant or licensed person, as well as thecommodity broker-dealer with whom the person is or will be associated if theapplicant or licensed person is a commodity sales representative, that anorder has been entered and of the reasons therefor and that within fifteendays after the receipt of a written request the matter will be set down forhearing. The provisions of this section shall apply with respect to allsubsequent proceedings.
4. If the commissioner finds that any applicant or licensed person is nolonger in existence or has ceased to do business as a broker-dealer, salesrepresentative, or investment adviser, or is subject to an adjudication ofmental incompetence or to the control of a committee, conservator, orguardian, or cannot be located after reasonable search, the commissioner may,by order, cancel the application or license.
(L. 1985 H.B. 409 & 532 § 26)*Word "demonstrating" does not appear in original rolls, omitted through typographical error.