{"data":{"id":"us-ky/krs-292.337","jurisdiction":"us-ky","citation":"KRS 292.337","heading":"Grounds for denial, suspension, limitation, or revocation of registration","body":"and for disciplinary action -- Summary order -- Emergency hearing -- Order\nin accordance with KRS Chapter 13B.\n(1) The commissioner may deny, refuse to renew, suspend, or revoke the registration of\nany broker-dealer, agent, investment adviser, or investment adviser representative.\nThe commissioner may bar, censure, or place on probation any registrant or any\nofficer, director, partner, or person occupying a similar status or perf orming similar\nfunctions for a registrant, or restrict, condition, or limit a registrant as to any\nfunction or activity of the business for which registration is required in this state.\nThe commissioner may take any of the foregoing actions for any reason set forth in\nsubsection (2) of this section.\n(2) For actions taken in subsection (1) of this section, the commissioner shall find that\nit is in the public interest and further find that the applicant or registrant or, in the\ncase of a broker -dealer, or inv estment adviser, any partner, officer, or director, any\nperson occupying a similar status or performing similar functions, or any person\ndirectly or indirectly controlling the broker-dealer or investment adviser:\n(a) Has filed an application for registrati on under this chapter which, as of its\neffective date, or as of any date after filing in the case of an order denying\neffectiveness, was incomplete in any material respect or contained any\nstatement which was, in the light of the circumstances under which it was\nmade, false or misleading with respect to any material fact;\n(b) Has violated or failed to comply with this chapter or any administrative\nregulation promulgated or order issued under this chapter or a predecessor\nlaw;\n(c) Has been convicted of, or has pending against him or her, a felony;\n(d) Has been convicted within the past ten (10) years of, or has pending against\nhim or her, any misdemeanor involving a security or any aspect of the\nsecurities business;\n(e) Is permanently or temporarily enjoined by any court of competent jurisdiction\nfrom engaging in or continuing any conduct or practice involving any aspect\nof the securities business;\n(f) Is the subject of an order of the commissioner denying, suspending, or\nrevoking registration as a broker -dealer, agent, investment adviser, or\ninvestment adviser representative;\n(g) Is the subject of any of the following orders that are currently effective and\nwere issued within the last five (5) years:\n1. An order by any securities administrator, entered after n otice and\nopportunity for hearing, denying, suspending, limiting, or revoking the\nperson's license as a broker -dealer, agent, investment adviser, or\ninvestment adviser representative or the substantial equivalent of those\nterms;\n2. An order of a self -regulatory organization finding a violation of federal\nlaw or a rule of the self-regulatory organization;\n3. A United States Postal Service fraud order;\n4. A cease and desist or other administrative order entered after notice and\nopportunity for hearing by the commissioner, or any other securities\nadministrator or the United States Commodity Futures Trading\nCommission; or\n5. An order by the United States Comm odity Futures Trading Commission\ndenying, suspending, or revoking registration under the Commodity\nExchange Act, 7 U.S.C. secs. 1 et seq.;\n(h) Has engaged in dishonest or unethical practices in the securities, commodities,\ninvestment, franchise, banking, f inance, or insurance business within the\nprevious ten (10) years;\n(i) Is insolvent;\n(j) Is not qualified on the basis of such factors as training, experience, or\nknowledge of the securities business. However, an order against an individual\nshall not be bas ed on this paragraph if the individual has passed all\nexaminations required as a condition of registration;\n(k) Has reasonably failed to supervise an agent, investment adviser representative,\nor other individual, if the agent, investment adviser representa tive, or other\nindividual was subject to the person's supervision and, within the previous ten\n(10) years, committed a violation of this chapter or administrative regulation\npromulgated or order issued under this chapter;\n(l) Has failed to pay a fee required under this chapter within thirty (30) days after\nhaving received written notice from the commissioner of the failure to pay the\nrequired fee. The commissioner shall vacate an order issued under this\nsubsection if the fee is paid within thirty (30) days of the date of the order;\n(m) Has violated the law of any jurisdiction governing or regulating any aspect of\nthe business of securities or banking, or, within the past five (5) years, has\nbeen the subject of an action of any securities regulator denying, r evoking, or\nsuspending the right to engage in the business of securities as a broker -dealer,\nagent, investment adviser, or investment adviser representative or is the\nsubject of an action of any securities exchange or self -regulatory organization\noperating under the authority of a securities regulator suspending or expelling\nthe person from membership in the exchange or self -regulatory organization;\nor\n(n) Refuses to allow or otherwise impedes an examination under this chapter or\nrefuses access to a registrant's office to conduct an examination.\n(3) The commissioner may not institute a proceeding under this section based solely on\na fact or transaction known to him or her when a registration became effective,\nunless the proceeding is instituted within sixty (60) days after the effective date of\nthe registration.\n(4) The commissioner may by order summarily restrict, condition, limit, or suspend a\nregistration, or censure or bar a registrant before final determination of an\nadministrative proceeding under this section. A summary order issued under this\nsubsection shall only be based upon a finding by the commissioner that such action\nis in the public interest and that there is substantial evidence of a violation of law\nthat constitutes an immediate danger to the public health, safety, or welfare. One (1)\nor more of the grounds listed in subsection (2) of this section shall be considered for\na summary order. Any person aggrieved by an order of the commissioner under this\nsection may file with the office an application for an emergency hearing pursuant to\nKRS 13B.125 within thirty (30) days of the date of the order. The commissioner\nshall comply with KRS 13B.125 when entering a summary order. The\ncommissioner may modify, stay, extend, or vacate the summary order iss ued under\nthis subsection.\n(5) The commissioner shall not issue an order under this section, except under\nsubsection (4) of this section, without appropriate notice to the applicant or\nregistrant, opportunity for a hearing, and written findings of fact and  conclusions of\nlaw in accordance with KRS Chapter 13B.","path":["KRS Chapter 292"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=15547","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:23Z","sha256":"ae1365006e9f4d7dada961f5f407b1834312908f84df70e388316f1dc6765c25","source_id":"us-ky","stale":false,"prev":"us-ky/krs-292.336","next":"us-ky/krs-292.338"},"notice":"GroundRules: Original legal text. Not legal advice."}