(b)

1. (1) When the staff or the commissioner learns, through examination or otherwise, of an applicant’s or registrant’s possible failure to comply with the Arkansas Securities Act, Arkansas Code § 23-41-101 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 § 23-42-308(a) of the Arkansas Securities Act, the staff shall notify such applicant or registrant of the alleged violation or action and set a period of time in which the applicant or registrant must show compliance.
2. (2) If the applicant’s or registrant’s response to the staff’s letter is deemed not to show compliance with the Arkansas Securities Act or this part, a pleading may be filed by the staff with the commissioner requesting that the matter be set for a hearing.
3. (3) Notification to the applicant or registrant of the alleged violation or violations shall not be deemed to be the institution of a proceeding.

(c)

1. (1) If the staff files a pleading with the commissioner or the commissioner summarily suspends, postpones, or cancels a registration, the applicant or registrant (as well as the employer or prospective employer if the applicant or registrant is an agent or an investment adviser representative) shall be promptly served with a copy of the pleading or order.
2. (2) An affected applicant or registrant may request a hearing of the matter by making a written request to the commissioner within thirty (30) days of receipt of a summary order.
3. (3) A requested hearing shall be held within fifteen (15) days of receipt of a written request, but if no hearing is requested and none is ordered by the commissioner, the order will remain in effect as a final order.

(d)

1. (1) If the commissioner issues an order which imposes a suspension, revocation, or cancellation of the registration of a person or bars that person from further association with any registrant, the registrant shall not allow that person to remain associated with it in any capacity, including clerical or ministerial functions.
2. (2) When an individual is suspended, a registrant, in addition to the above, shall not pay or credit any salary, commission, profit, or other remuneration that results directly or indirectly from any security transaction that individual might have earned during the period of suspension.