Section 604.018. Imposition of administrative assessments under section 602.1(c)—statement of policy

(a) Section 602.1(c) of the act (70 P. S. § 1-602.1(c)) authorizes the Commission, after giving notice and opportunity for a hearing, to impose administrative assessments against a broker-dealer, agent, investment adviser or associated person registered under section 301 of the act (70 P. S. § 1-301) or an affiliate of the broker-dealer or investment adviser if the Commission finds that the person either willfully has violated the act or a rule or order of the Commission under the act or has engaged in dishonest or unethical practices in the securities business or has taken unfair advantage of a customer.

(b) Section 602.1(c)(2) of the act requires the Commission to consider certain factors in making a determination to impose an administrative assessment, including factors the Commission finds appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the act.

(c) Under section 21B of the Securities Exchange Act of 1934 (15 U.S.C.A. § 78u-1), the United States Securities and Exchange Commission (SEC) may impose civil administrative penalties for violations of the Federal securities laws.

(d) Section 6 of the Securities Exchange Act of 1934 (15 U.S.C.A. § 78f) forbids the SEC to register an exchange as a national securities exchange unless the rules of the exchange provide that its members and associated persons are subject to certain disciplinary rules of the exchange, including imposition of fines.

(e) Section 15A of the Securities Exchange Act of 1934 (15 U.S.C.A. § 78o-3) forbids the SEC to register an association of brokers and dealers as a national securities association unless the rules of the association provide that its members and associated persons are subject to certain disciplinary rules of the association, including imposition of fines.

(f) Therefore, the general policy of the Commission will be not to adopt an order under section 602.1(c) of the act to impose an administrative assessment on a person who, for the same conduct, already has been assessed a civil administrative penalty by the SEC under section 21B of the Securities Exchange Act of 1934 or has been fined by a national securities exchange or a national securities association registered with the SEC under the Securities Exchange Act of 1934 (15 U.S.C.A. § § 78a—78mm).

(g) This section does not preclude the Commission from issuing an order accepting an offer of settlement submitted by a party to an administrative proceeding, the terms of which provide for payment to the Commission of a sum of money designated as an administrative assessment under section 602.1(c) of the act.

The provisions of this § 604.018 adopted June 11, 1993, effective June 12, 1993, 23 Pa.B. 2743; transferred and renumbered from 64 Pa. Code § 604.018, December 14, 2012, effective December 15, 2012, 42 Pa.B. 7533. Immediately preceding text appears at serial pages (324465) to (324466).