H.B. 877

VETOES

(iii) Involves the larceny, theft, robbery, extortion, forgery,
counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or
misappropriation of funds or securities, or an attempt or conspiracy to commit any of
those offenses;

(4)     Is permanently or temporarily enjoined by any court of competent
jurisdiction from engaging in or continuing any conduct or practices involving any aspect
of the securities or investment advisory or any other financial services business;

(5)     Is the subject of an order of the Commissioner denying, suspending, or
revoking registration as a broker-dealer, agent, investment adviser, or investment adviser
representative;

(6)     Is the subject of an order entered within the past five years by the
securities administrator or any other financial services regulator of any [other] state or
by the Securities and Exchange Commission denying or revoking registration as a
broker-dealer, investment adviser, investment adviser representative, or agent or the
substantial equivalent of those terms as defined in this title, or any other financial services
license or registration, or is the subject of an order by the Commodity Futures Trading
Commission denying, suspending, or revoking registration under the Commodity
Exchange Act, or is suspended or expelled from a national securities exchange or national
securities association registered under the Securities Exchange Act of 1934 either by
action of a national securities exchange or national securities association, the effect of
which action has not been stayed by appeal or otherwise, or by order of the Securities and
Exchange Commission, or is the subject of a United States post office fraud order, but:

(i) The Commissioner may not institute a revocation or suspension
proceeding under this item (6) more than one year from the date of the order or action
relied on; and

(ii) [He] THE COMMISSIONER 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 in the securities or
investment advisory or any other financial services business;

(8)     Is insolvent, either in the sense that [his] THE PERSON'S liabilities
exceed [his] assets or in the sense that [he] THE PERSON 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;

(9)     Is not qualified on the basis of factors such as training, experience, and
knowledge of the securities or investment advisory or any other financial services
business, except as otherwise provided in subsection (c) of this section;

(10)   Has failed reasonably to supervise [his] THE BROKER-DEALER'S
agents, if [he] THE PERSON is a broker-dealer, or [his] THE investment [adviser]
ADVISER'S representatives, if [he] THE PERSON is an investment adviser; or

(11)   Has failed to pay the proper [filing] fee, but the Commissioner may

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