9.2.3. Other Provisions
The Uniform Securities Act outlines a number of other administrative rules regarding the role of the administrator’s office. The biggest of these is the rules surrounding a “final order,” when the administrator decides what final action to take on an initial order that was previously issued. Essentially, this is the finished product after an investigation (and possibly a hearing) have been completed. In the final order, the original order may be:
• Vacated (charges or penalties dropped)
• Finalized (charges and penalties confirmed)
• Modified (charges and penalties changed)
From time to time, the state administrator may also issue what is known as an interpretive opinion. Under one of these, the administrator cuts off discussion at the pass and says that it will not pursue further action against a person, firm, or issuer. Naturally, the administrator can only do this if it can establish that the person has not violated any law.
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SUMMARY TABLE Administrative Jurisdiction |
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What is an administrator allowed to do? |
What is an administrator not allowed to do? |
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• Initiate investigations of potential securities violations involving residents of his state or issues transacted in state • Collect evidence for investigations • Issue and enforce subpoenas (including at the request of other state administrators) • Request courts and law enforcement to pursue action against securities violators | |