FENIS

Suspension of Registration (Sec. 15)

Host: Is the grant of Registration absolute? [Pause]

The answer to this question is NO.

What if the information contained in the registration is:

 Misleading,
 Incorrect,
 Inadequate or ,
 Incomplete in any material respect? [Pause] Or

What if the sale or offering for sale of the security registered is or may tend to be FRAUDULENT? [Pause]

Then, the SEC may require the issuer to provide further information to ascertain whether the
registration of such security should be revoked on any ground as provided in the law. 1

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Host: In which instances may the grant of registration be suspended? [Pause]

The following are grounds for suspension:

First, during a pending investigation through an order

 specifying the grounds for such action

 and by notifying involved issuer, underwriter, dealer or broker2

Second, refusal to furnish SEC-required information3

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Host: Upon issuance of an order of suspension, what are its effects? [Pause]

 No further offer or sale of securities shall be made UNTIL the order is lifted or set aside
 Otherwise, such sale is void.4

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Host: What will happen next?5 [Pause]

1
Sec. 15.1 (1), SEC Code
2
Sec. 15.1 (2), SEC Code
3
Sec. 15.2 (1), SEC Code
4
Sec. 15.2 (2), SEC Code
5
Sec. 15.3, SEC Code
 FENIS

First, there will be a hearing

Then, if the Commission finds that the sale should be revoked, an ORDER
PROHBITING THE SALE of such security shall be issued.

On the other hand, if the Commission finds that the sale will neither be fraudulent nor
result to fraud, it shall issue an ORDER REVOKING THE ORDER OF SUSPENSION.
-Such security shall be then restored to its status as a registered security