Which statement accurately describes consequences for licensees who fail to comply with NSREC or NSAR guidelines?

• A. They will always face criminal charges.
• B. They may face discipline by NSREC, fines, suspension or license revoke, and possible legal action by clients.
• C. No penalties exist for minor non-compliance.
• D. They automatically lose their license for a year.

Answer: (B)

When licensees don’t follow NSREC or NSAR guidelines, the governing bodies can take action to uphold professional standards. The issues are handled through regulatory processes, not automatic criminal charges. A licensee may face disciplinary action by the regulator, which can include fines, suspension of their license, or revocation, depending on the severity of the breach. At the same time, clients who were affected can pursue civil legal action for damages, such as misrepresentation or breach of duties. Because regulatory discipline and civil lawsuits are separate paths, a licensee could experience both in different circumstances. Minor non-compliance can still lead to sanctions, while more serious violations may result in stronger penalties, but there isn’t a guaranteed criminal charge or a fixed one-year license loss.