I would think that if they did that, without opening an investigation or filing charges against the existing agent, that agent would have grounds for a law suit. I am not a lawyer, but I would find one pretty durned quick if I were running a business and the government started telling my clients that they had to switch.
I would think the SEC could find out anything they wanted to without PPHM having to change transfer agents. Maybe the last one was just crooked or inept.......