J. MILLARD TAWES, Governor 7

shall be preserved for three years unless the Commissioner by rule
prescribes otherwise for particular types of records,

(b) Every registered broker-dealer shall file such financial reports
as the Commissioner by rule prescribes.

(c) If the information contained in any document filed with
the Commissioner is or becomes inaccurate or incomplete in any
material respect, the registrant shall promptly file a correcting
amendment unless notification of the correction has been given
under section 15(b).

(d) All the records referred to in subsection (a) are subject at
any time or from time to time to such reasonable periodic, special,
or other examinations by representatives of the Commissioner,
within or without this state, as the Commissioner deems necessary
or appropriate in the public interest or for the protection of investors.
For the purpose of avoiding unnecessary duplication of examinations,
the Commissioner, insofar as he deems it practicable in administering
this subsection, may cooperate with the securities administrators of
other states, the Securities and Exchange Commission,, and any
national securities exchange or national securities association regis-
tered under the Securities Exchange Act of 1934.

§ 18. Denial, Revocation, Suspension, Cancellation and Withdrawal
of Registration.

(a) The Commissioner may by order deny, suspend, or revoke any
registration if he finds (1) that the order is in the public interest
and (2) that the applicant or registrant or, in the case of a broker-
dealer, any partner, officer, or director, any person occupying a simi-
lar status or performing similar functions, or any person directly or
indirectly controlling the broker-dealer

(A) has filed an application for registration which as of its effec-
tive date, or as of any date after filing in the case of an order deny-
ing effectiveness, was incomplete in any material respect or contained
any statement which was, in light of the circumstances under which
it was made, false or misleading with respect to any material fact;

(B) has willfully violated or willfully failed to comply with any
provision of this act or a predecessor act or any rule or order under
this act or a predecessor act;

(C) has been convicted, within the past ten years, of any misde-
meanor involving a security or any aspect of the securities business,
or any felony;

(D) is permanently or temporarily enjoined by any court of com-
petent jurisdiction from engaging in or continuing any conduct or
practice involving any aspect of the securities business;

(E) is the subject of an order of the Commissioner denying,
suspending, or revoking registration as a broker-dealer or agent;

(F) is the subject of an order entered within the past five years
by the securities administrator of any other state or by the Securities
and Exchange Commission denying o? revoking registration as a
broker-dealer or agent, or the substantial equivalent of those terms
as defined in this act, or is the subject of an order of the Securities