If gross mismanagement of records is found, which action can the Division NOT take?

In cases of gross mismanagement of records, the Division has several remedies at its disposal to address and rectify the situation. However, freezing the trust account is not typically one of the actions that the Division can take.

Freezing a trust account involves restricting access to the funds in that account, which can be an extreme measure. The primary purpose of regulatory actions is to ensure compliance with the law and to protect consumers or clients, rather than to impose punitive measures without just cause. The other options—appointing a receiver, requiring an audit by an independent CPA, and charging the broker for the audit—are all administrative responses that align with typical regulatory protocols aimed at ensuring the integrity of financial operations and compliance with regulatory requirements. These actions focus on oversight and correction rather than outright restriction of access to client funds, which is what a freeze would entail.