Withdrawal, Cancellation & Retained Jurisdiction
Overview
Not all actions taken by the state administrator against the registration status of certain persons are punishments. Two important registration actions are non-punitive:
- Withdrawals
- Cancellations
🔑 Punitive vs. non-punitive administrative actions
| Action | Punitive or non-punitive? | Who initiates it |
|---|---|---|
| Withdrawal | Non-punitive | The registered person (voluntary request) |
| Cancellation | Non-punitive | The state administrator (proactively) |
| Suspension | Punitive | The state administrator |
| Revocation | Punitive | The state administrator |
Even though withdrawals and cancellations are non-punitive, the administrator can still bring a suspension or revocation action after the registration is gone (see the one-year window below).
Withdrawals
A withdrawal is a request submitted by a registered person who wants to voluntarily end their registration.
- Broker-dealers and investment advisers typically file withdrawal forms when they shut down the business or stop offering securities-related services.
- Agents and investment adviser representatives (IARs) typically file withdrawal forms when they retire, resign, or are terminated.
🔑 Withdrawal forms
| Form | Use |
|---|---|
| Form BDW | Broker-dealer withdrawal form |
| Form ADV-W | Investment adviser registration withdrawal form |
| Form U5 | Agent & IAR registration termination form |
Cancellation
A cancellation happens when the registered person can’t voluntarily submit the appropriate withdrawal form, so the state administrator cancels the registration.
The most common reasons include:
- Death
- Mental incapacitation
In these situations, the administrator proactively updates the person’s registration status.
Cancellation can also occur when the administrator can’t contact the registered person. For example, the administrator might send a letter that is returned because the person no longer lives at the address on file. Because a change of address normally requires prompt disclosure, the administrator may cancel the person’s registration until the issue is resolved.
Definitions
| Term | Definition | Example |
|---|---|---|
| Withdrawal | A request submitted by a registered person who wants to voluntarily end their registration | An agent who retires, resigns, or is terminated files a Form U5; a broker-dealer that shuts down files Form BDW |
| Cancellation | Occurs when the registered person can’t voluntarily submit the appropriate withdrawal form, so the state administrator cancels the registration | Death, mental incapacitation, or a letter returned because the person no longer lives at the address on file |
🔑 Retained jurisdiction — one year
Even after a person’s registration has been withdrawn or canceled, the administrator retains jurisdiction over that person for one year. The Uniform Securities Act (USA) states:
The administrator may institute a revocation or suspension proceeding… within one year after the withdrawal became effective.
This matters because withdrawals and cancellations are non-punitive. Even though the registration is no longer active, the administrator can still bring a suspension or revocation action during that one-year window. A suspension or revocation can make it harder to re-register in the future and would appear on the person’s permanent public record.
| Item | Time limit |
|---|---|
| Administrator’s jurisdiction after withdrawal or cancellation | 1 year |
| Window to institute a revocation or suspension proceeding | Within 1 year after the withdrawal became effective |
Key points
Withdrawal of registration
- Person voluntarily requests their registration to be removed
Cancellation of registration
- State administrator proactively removes the registration
- Most common reasons:
- Death
- Incapacitation
- Cannot get in contact with the person
Sources
Primary/official references for the material in this chapter. Every link was fetched and returned HTTP 200 on 2026-08-15.
| # | Source | Publisher |
|---|---|---|
| 1 | Uniform Securities Act 1956 with NASAA updates — the tested statute | NASAA |
| 2 | Adopted model rules archive | NASAA |
| 3 | Achievable Series 65 — chapter 4.4.3 | Achievable (course text) |