Denial, suspension, revocation, fine or condition on grounds of lack of qualification. The Administrator’s determination that an applicant or licensed person lacks qualification under NRS 90.420 is limited by the following provisions:
1. The Administrator may not enter an order against a broker-dealer because of the lack of qualification of:
(a) A person other than the broker-dealer if the broker-dealer is a natural person; or
(b) A sales representative of the broker-dealer.
2. The Administrator may not enter an order against an investment adviser because of the lack of qualification of:
(a) A person other than the investment adviser, if the investment adviser is a natural person; or
(b) Any representative of an investment adviser or other person who represents the investment adviser in doing an act that makes the person an investment adviser.
3. The Administrator may not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge, or both.
4. The Administrator shall consider that:
(a) A sales representative who will work under the supervision of a licensed broker-dealer need not have the same qualifications as a broker-dealer; and
(b) A representative of an investment adviser who will work under the supervision of a licensed investment adviser need not have the same qualifications as an investment adviser.
5. The Administrator shall consider that an investment adviser is not necessarily qualified solely on the basis of experience as a broker-dealer or sales representative.
Last modified: February 26, 2006