Administrative Actions

Quick Answer

The Administrator issues cease and desist orders with or without a prior hearing, and stop orders against securities registrations. Denying, suspending, or revoking any registration needs both prongs: the public interest AND a statutory ground, plus notice, an opportunity for hearing, and written findings. An appeal never stays the order.

The whole unit on one sheet: what the Administrator orders alone, the test every registration action must meet, and the numbers the exam swaps.


What Can the Administrator Order Without a Court?

  • A cease and desist order, with or without a prior hearing, and with no court approval. It reaches anticipated violations too.
  • A summary postponement or suspension of a registration pending final determination, expressly carved out of the notice-and-hearing requirement.
  • Injunctions remain judicial. Only a court grants them, along with rescission, restitution, and disgorgement.

What Does the Two-Prong Test Require?

  • Denial, suspension, or revocation of a person's registration requires the public interest AND a statutory ground, plus notice, an opportunity for hearing, and written findings.
  • Stop orders block, suspend, or revoke a securities registration under the same two-prong test.
  • Cancellation is different. It is housekeeping for a registrant who has died, dissolved, or cannot be located, and it needs no public-interest finding.

How Do Notice Filings Work for Federal Covered Securities?

  • A federal covered security is exempt from state registration, but the Administrator may still require a notice filing and fee for most categories, and may stop-order it for a filing failure.
  • Regulation D notices are due within 15 days of the first in-state sale.
  • Exchange-listed covered securities are the exception and are fully preempted: no notice filing, no fee, and never a stop order.

Which Numbers Must You Lock In?

ItemValue
Appeal a final order to courtwithin 60 days after entry
Hearing set after a summary suspensionwithin 15 days of the written request
Retroactive action on a securities registrationwithin 30 days of the effective date
Retroactive action on a person's registrationwithin 90 days of registration
Withdrawal becomes effective30 days after receipt

Which Gotchas Are Tested Most?

  • Cease and desist is administrative; an injunction is judicial. "Who can enjoin?" is always the court.
  • Both prongs are always required. Neither the public interest nor a statutory ground is enough alone.
  • The two windows are not the same. A securities registration gets 30 days; a person's registration gets 90, and only for a final order the applicant itself disclosed.

One-Breath Recap

The Administrator alone issues cease and desist orders with or without a hearing, summarily suspends a registration pending determination, and stop-orders securities registrations. Every denial, suspension, or revocation needs the public interest and a statutory ground together, with notice and written findings, while cancellation is mere housekeeping. Only a court enjoins or orders money, and an appeal never stays the order.


Need more than the recap? Read the full Administrative Actions unit.