Not all actions taken by the state administrator against the registration status of certain persons are punishments. Two registration actions are considered non-punitive:
A withdrawal is a request submitted by a registered person to voluntarily end their registration.
These are the forms used to withdraw registration:
| Form | Use |
|---|---|
| Form BDW | Broker-dealer withdrawal form |
| Form ADV-W | Investment adviser registration withdrawal form |
| Form U5 | Agent & IAR registration termination form |
A cancellation happens when the registered person can’t voluntarily submit the appropriate withdrawal form, so the state administrator cancels the registration.
The most common reasons for cancellation include death and mental incapacitation. In those situations, the administrator proactively updates the person’s registration status.
Cancellation can also occur when the administrator can’t contact the registered person. For example, the administrator may send a letter that is returned because the person no longer lives at the address on file. Because a change of address normally requires prompt disclosure, the administrator may cancel the person’s registration until the issue is resolved.
Even after a person’s registration has been withdrawn or canceled, the administrator retains jurisdiction over that person for one year. The Uniform Securities Act (USA) specifically says:
The administrator may institute a revocation or suspension proceeding… within one year after the withdrawal became effective.
This matters because withdrawals and cancellations are non-punitive, but they don’t prevent later disciplinary action. If the person later wants to rejoin the industry, a suspension or revocation on their record could make re-registration more difficult and would appear on their permanent public record.
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