What is FINRA statutory disqualification?

Statutory disqualification is a status that denotes that the individual may be subject to disqualification under Article III, Section 4 of the FINRA By-Laws and/or parallel provisions in the Securities Exchange Act of 1934. See also FINRA’s Statutory Disqualification Process website for SD Tier information.

Which of the following describes statutory disqualification of a registered person under SEC rules?

A person is said to be statutory disqualified under SEC rules if the person is enjoined temporarily or permanently from violating the securities laws by a court of competent jurisdiction.

What misdemeanors disqualify you from FINRA?

Misdemeanors that must be disclosed are those involving investments or an investment-related business, fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion or a conspiracy to commit any of these offenses.

What is a U4 statutory disqualification?

Section 15(b)(4)(A) of the Securities Exchange Act of 1934 provides that a person who willfully fails to disclose material information (and to the regulators, all questions on the Form U4 are material) on a Form U4 is subject to a statutory disqualification from association with any securities broker-dealer.

Is statutory disqualification permanent?

A person becomes subject to a statutory disqualification if the person is enjoined temporarily or permanently from violating the securities laws by a court of competent jurisdiction; is barred or suspended from association with a broker-dealer by the Commission, the Commodities Futures Trading Commission, a self- …

How far back does finra background check?

Employment History FINRA has stated that it expects firms to verify the full ten-year employment history listed on the Form U4.

Who is not eligible for FINRA membership?

(a) No registered broker, dealer, municipal securities broker or dealer, or government securities broker or dealer shall be admitted to membership, and no member shall be continued in membership, if such broker, dealer, municipal securities broker or dealer, government securities broker or dealer, or member fails or …

Who is subject to FINRA?

FINRA Regulates Broker-Dealers, Capital Acquisition Brokers, and Funding Portals. A Broker Dealer is in the business of buying or selling securities on behalf of its customers or its own account or both. A Capital Acquisition Broker is a Broker Dealer subject to a narrower rule book.

What shows up on a FINRA background check?

The amendment’s requirement that firms conduct a “national search” is a minimum requirement, and the need for a public records search is “mandatory.” According to FINRA, the latter may include, but is not limited to “general information, such as name and address of individuals, criminal records, bankruptcy records.

What is reported on U4?

The Form U4 is the Uniform Application for Securities Industry Registration or Transfer. Representatives of broker-dealers, investment advisers, or issuers of securities must use this form to become registered in the appropriate jurisdictions and/or SROs.

Who is not eligible for finra membership?

What does statutory disqualification mean in FINRA By Laws?

Statutory disqualification is a status that denotes that the individual may be subject to disqualification under Article III, Section 4 of the FINRA By-Laws and/or parallel provisions in the Securities Exchange Act of 1934.

When is a person subject to statutory disqualification?

Statutory disqualification is a status that denotes that the individual may be subject to disqualification under Article III, Section 4 of the FINRA By- Laws and/or parallel provisions in the Securities Exchange Act of 1934.

Can a registered representative be sd’d by FINRA?

Finally, one more thing about statutory disqualification: FINRA could care less that a finding of willfulness renders a registered representative SD’d. statutory disqualification is not a FINRA sanction; it is a status that flows as a matter of course from predicates enumerated in the Exchange Act.

What are the rules for continuing to be a member of FINRA?

Article III, Section 3 of FINRA’s By-Laws provides that no member shall be continued in membership if it becomes subject to disqualification; and that no person shall be associated with a member, continue to be associated with a member, or transfer association to another member if such person is or becomes subject to disqualification.