An unregistered individual in State X receives compensation for providing a written asset allocation plan (with specific mutual fund recommendations) to five clients. When the Administrator becomes aware, the MOST LIKELY action is:

1. AIssue a cease and desist order and seek civil penalties for unregistered investment adviser activity.✓ Correct answer
2. BRequest that the individual register as an agent.
3. CFile criminal charges for securities fraud.
4. DTake no action since only five clients are involved.

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