WILLIAM DONALD SCHAEFER, Governor Ch. 805

(ii) He may not enter an order under this item
(6) on the basis of an order under another state act unless that
order was based on facts which would currently constitute a
ground for an order under this section;

(7)  Has engaged in dishonest or unethical practices;

(8)   Is insolvent, either in the sense that his
liabilities exceed his assets or in the sense that he cannot meet
his obligations as they mature, but the Commissioner may not
enter an order against a broker-dealer OR INVESTMENT ADVISER
under this item (8) without a finding of insolvency as to the
broker-dealer OR INVESTMENT ADVISER; [or]

(9)   Is not qualified on the basis of factors such as
training, experience, and knowledge of the securities business,
except as otherwise provided in subsection [(d)] (C) of this
[section.] SECTION;

[(b) The Commissioner by order may deny, suspend, or revoke
any registration if he finds that the order is in the public
interest and that the applicant or registrant:]

[(1)] (10) Has failed reasonably to supervise his
agents, if he is a [broker-dealer; or] BROKER-DEALER, OR HIS
INVESTMENT ADVISER REPRESENTATIVES, IF HE IS AN INVESTMENT
ADVISER; OR

[(2)] (11) Has failed to pay the   proper filing fee,

but the Commissioner may enter only a denial     order under this

[item (2)] ITEM (11), and he shall vacate   the order when the
deficiency is corrected.

[(c)] (B) The Commissioner may not institute a suspension
or revocation proceeding on the basis of a fact or transaction
known to him when the registration became effective unless the
proceeding is instituted within the next 30 days.

[(d)] (C) The following provisions govern the application
of subsection (a) (9) of this section:

(1)  The Commissioner may not enter an order against a
broker-dealer on the basis of the lack of qualification of any
person other than the broker-dealer himself, if he is an
individual, or an agent of the broker-dealer;

(2)  THE COMMISSIONER MAY NOT ENTER AN ORDER AGAINST
AN INVESTMENT ADVISER ON THE BASIS OF THE LACK OF QUALIFICATION
OF ANY PERSON OTHER THAN THE INVESTMENT ADVISER HIMSELF, IF HE IS
AN INDIVIDUAL, OR AN INVESTMENT ADVISER REPRESENTATIVE OF THE
INVESTMENT ADVISER;

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