Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 175 - LICENSING OF BROKER-DEALERS, INVESTMENT ADVISERS, AND SALESPERSONS › Section 441-175-0140 - Disqualification from Automatic Licensing

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For purposes of this rule, principal
			 means a person who is engaged in the management of an enterprise including
			 supervision, solicitation, conduct of the enterprise, or training of persons
			 associated with the enterprise. Principal includes sole proprietors, officers,
			 partners, directors, and persons owning ten percent or more of the outstanding
			 voting securities of the enterprise or of a control person of the
			 enterprise.
(2) A person is not
			 qualified for automatic licensing if the person:
(a) Has been a principal of a broker-dealer
			 or state or federal covered investment adviser which has had its license or
			 notice denied, suspended or revoked by the director;
(b) Has had a license or notice suspended or
			 revoked by the director or a previous application for license denied by the
			 director;
(c) Has been convicted of
			 or pleaded guilty or no contest to any felony;
(d) Has been convicted of or pleaded guilty
			 or no contest to any misdemeanor involving investments or an investment-related
			 business, fraud, false statements or omissions, wrongful taking of property or
			 bribery, counterfeiting, extortion or gambling;
(e) Has been charged, either individually or
			 as a member of an enterprise in which the person was a principal, with any
			 felony or with a misdemeanor specified in subsection (d) of this
			 section;
(f) Has been enjoined by a
			 court in connection with any investment-related activity or has been found by a
			 court to have violated investment-related statutes or regulations;
(g) Has been found by the Securities and
			 Exchange Commission or the Commodity Futures Trading Commission:
(A) To have made a false statement or
			 omission;
(B) To have violated
			 investment-related statutes or regulations; or
(C) To have been a cause of an
			 investment-related enterprise having its authorization to do business denied,
			 suspended, revoked, or restricted.
(h) Has been the subject of an order by the
			 Securities and Exchange Commission or the Commodity Futures Trading Commission
			 denying, suspending, or revoking a registration or restricting
			 activities;
(i) Has been found by
			 any federal or state regulatory agency:
(A)
			 To have made a false statement or omission or to have been dishonest, unfair,
			 or unethical;
(B) To have violated
			 investment-related statutes or regulations; or
(C) To have been a cause of an
			 investment-related business having its authorization to do business denied,
			 suspended, revoked, or restricted.
(j) Has been the subject of an order by any
			 federal or state agency in connection with any investment-related
			 activity;
(k) Has had any federal
			 or state agency deny, suspend, or revoke a registration, license or notice or
			 otherwise prevent the person from associating with an investment-related
			 business or otherwise discipline the person by restriction of
			 activities;
(l) Has had any federal
			 or state agency revoke or suspend a professional license as an attorney,
			 accountant, or public contractor;
(m) Has been found by any self-regulatory
			 organization or commodities exchange:
(A) To
			 have made a false statement or omissions;
(B) To have violated the rules of the
			 self-regulatory organization or commodities exchange; or
(C) To have been a cause of an
			 investment-related business having its authorization to do business denied,
			 suspended, revoked, or restricted.
(n) Has been disciplined by expulsion or
			 suspension from membership of any self-regulatory organization or commodities
			 exchange;
(o) Has been barred or
			 suspended from association with a member of a self-regulatory organization or
			 commodities exchange;
(p) Has had
			 activities restricted by any self-regulatory organization or commodities
			 exchange;
(q) Has been the subject
			 of an order issued by a foreign government, court, regulatory agency, or
			 exchange relating to investments or fraud;
(r) Has been the subject of an
			 investment-related complaint or proceeding initiated by a consumer which:
(A) Resulted in an arbitration award or civil
			 judgment against the appellant regardless of the amount, alleged sales
			 practices violations which is still pending, or was settled for an amount of
			 $10,000 or more; or
(B) Was settled
			 or decided against the person individually or as part of a group for $10,000 or
			 more; or
(C) Within the past 24
			 months, alleged sales practices violations and compensatory damages of $5,000
			 or more, or alleged forgery, theft, misappropriation or conversion of funds or
			 securities.
(s) Is the
			 subject of any complaint, investigation, or proceeding specified in subsections
			 (2)(a) through (r) of this rule;
(t) Has been denied a securities-related bond
			 or similar instrument, has had such a bond or similar instrument revoked, or
			 has been the cause for payout on such a bond or similar instrument;
(u) Has any unsatisfied judgments or liens
			 against the person;
(v) Has failed
			 in business, made a compromise with creditors, filed a bankruptcy petition, or
			 been declared bankrupt;
(w) Has
			 been a principal of a firm which failed in business, made a compromise with
			 creditors, filed a bankruptcy petition, was declared bankrupt, had a trustee
			 appointed under the Securities Investors Protection Act, or had a direct
			 payment procedure initiated; or
(x)
			 Has been discharged or permitted to resign based on allegations of:
(A) Violations of investment-related
			 statutes, regulations, rules, or investment industry standards of
			 conduct;
(B) Fraud or the wrongful
			 taking of property; or
(C) Failure
			 to supervise in connection with investment-related statutes, regulations,
			 rules, or investment industry standards of
			 conduct.