Cease-and-Desist Order
An Administrator's order to stop a violation - issuable without a prior hearing.
What is Cease-and-Desist Order?
When a person is engaged in, or about to engage in, a violation, the Administrator can order them to stop, without prior notice or hearing. To enforce it, or to get an injunction, the Administrator must go to court.
Cease-and-Desist Order: a worked example
An Administrator orders a promoter to halt an unregistered crypto offering the same day it is discovered.
More terms in Uniform Securities Act & Registration
Uniform Securities Act (USA)
The model state securities law most states' 'blue sky' statutes are based on.
State Securities Administrator
The official or agency that enforces a state's securities act.
Person (USA Definition)
Anyone who can be held legally responsible - individuals and organizations.
Investment Adviser (USA Definition)
Advises on securities, as a business, for compensation.
Excluded from the Investment Adviser Definition
Banks, incidental professionals, broker-dealers, and publishers are not advisers at all.
Exemptions from State Adviser Registration
An adviser with no office in the state and only institutional or very few clients there.
De Minimis Exemption
No place of business in the state and fewer than 6 clients there in 12 months.
Federal Covered Adviser
An adviser registered with the SEC rather than the states.
All Uniform Securities Act & Registration terms · Full glossary