When can a cease and desist order be issued?

Study for the Arizona Fiduciary License Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A cease and desist order is a formal request issued by a regulatory board or authority directing an individual or entity to stop a specific activity that is believed to be in violation of the law or regulations. The correct answer indicates that such an order can be issued after a successful investigation. This is critical because the issuance of a cease and desist order typically follows evidence gathered during an investigation, which substantiates the need to take action.

In many regulatory contexts, the authority must have determined that there is sufficient cause based on the results of the investigation to justify the issuance of such an order. This ensures that the order is supported by factual findings and is not arbitrary, thus reinforcing the legal process involved in upholding regulations.

The other options do not align with the procedural requirements necessary for issuing a cease and desist order. For instance, issuing an order upon request by the certificate holder does not follow the typical enforcement protocol, as this tends to lack the investigative basis required. Similarly, issuing an order before any investigation would bypass the necessary legal framework designed to protect due process. Lastly, while the board may deem it necessary to issue an order, this action is contingent upon having conducted an investigation that leads to conclusive findings.

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