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Hawaii Securities Law

Each state has its own securities laws. The following are selected sections of the Hawaii securities laws that are generally applicable in FINRA arbitrations.

E. Denial Of Application; Suspension And Revocation Of Registration Of Broker-Dealers, Agents, Investment Advisers, And Investment Adviser Representatives
§16-39-470 Denial; suspension and revocation. (a) A proceeding to
deny an application for registration, or to suspend or revoke the effectiveness of
a registration may be instituted by the commissioner if the action is in the public
interest, reasonable grounds exist that the applicant or registrant has violated or
failed to comply with any provision of chapter 485A, HRS, or this chapter, or
the applicant or registrant has demonstrated its unworthiness to transact the
business of a broker-dealer, agent, investment adviser, or investment adviser

(b) Without in any way limiting the generality thereof, for the
purposes of section 485A-412(d)(14), HRS, any of the following shall
demonstrate an applicant’s or registrant’s unworthiness to transact the business
of a broker-dealer or agent:
balances reflecting completed transactions of any of its customers, or both;

(2) Churning. Inducing trading in a customer’s account which is
excessive in size or frequency in view of the financial resources
and character of the account;

(3) Unsuitable recommendations. Recommending to a customer the
purchase, sale, or exchange of any security without reasonable
grounds to believe that the transaction or recommendation is
suitable for the customer based upon reasonable inquiry
concerning the customer’s investment objectives, financial
situation and needs, and any other relevant information known by
the broker-dealer or agent;

If you have questions about a state securities law, The White Law Group may be able to help. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.

For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.

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