(a)

1. (1) When the staff or the Securities Commissioner learns of an applicant’s or registrant’s possible failure to comply with the Arkansas Securities Act, Arkansas Code § 23-42-101 et seq., or this part or when it is determined that the applicant or registrant might be subject to one (1) of the provisions set forth in Arkansas Code § 23-42-405(a) of the Arkansas Securities Act, the following may occur:

   1. (A) The applicant may be notified by deficiency letter or by telephone and, after adequate notice, the staff may initiate legal proceedings with the commissioner to deny, suspend, or revoke the effectiveness of the registration statement; or
   2. (B) The commissioner may enter a summary order suspending or postponing effectiveness of the registration statement pending final determination of a proceeding to deny or revoke the effectiveness.
2. (2) If an applicant’s response to a deficiency letter or telephone call is not deemed to show compliance, the applicant may be allowed to withdraw the registration statement prior to its effectiveness.