Final answer:
From a legal perspective, there is no specific law prohibiting the use of psychic readings for investment decision making. However, the ethical implications of using psychic readings in investment advice are debatable.
Step-by-step explanation:
According to the given information, a state securities regulator can only disqualify a person from registration based on reasons found in state law. However, there is no specific law prohibiting the use of psychic readings for investment decision making. Therefore, from a legal perspective, it may be permissible for an investment advisor to use psychic readings if there are no state laws specifically prohibiting it.
However, the ethical implications of using psychic readings in investment decision making are debatable. The use of psychic readings is not based on scientific evidence or reliable data, which are generally expected in the field of investment advice. It can be argued that relying on psychic readings may not align with the principles of professionalism, transparency, and fiduciary duty that investment advisors are expected to uphold.
Ultimately, the decision of whether it is ethical for an investment advisor to use psychic readings would depend on the individual's personal and professional judgment, as well as any applicable industry guidelines or codes of conduct that they are bound to follow.