Cancellation, Suspension or Restriction of the License by the Authority The Authority may decline, suspend, revoke, or restrict the activity of any Licensed Person in respect of any Securities Activity, or any Related Party, after being given evidence that the Person has fallen within any of the following provisions: 1. Commits a major fault, gives misleading information, or omits to mention a material fact when applying for a license, or omits to mention any other information that should be submitted to the Authority. 2. Fails to meet the standards applicable under Module 5 (Securities Activities and Registered Persons) of these Bylaws or any rules issued accordingly. 3. Violates any provision, rule, regulation or bylaws issued under this law, or under any law related to its activity, or a securities law, or a rule or bylaws of another country. 4. Is negligent in monitoring one of his affiliates (subordinates) by failing to prevent him from acting in a way which might be a violation of the provisions of this Law or Bylaws.