What possible past activities will prevent me from becoming a Registered Representative?

By Shauna Carther AAA
A:

There are several events that could either prevent a person from becoming a Registered Representative, or that will result in the loss of membership or registration.

According to the NASD, you could be subject to a "statutory disqualification" under the Exchange Act if you:
(Note: the following items are a brief summary of the disclosure questions on form U-4)

  • were convicted, pled guilty or no contest; or charged with a felony.
  • were charged or convicted with a misdemeanor involving investments and related to fraud, extortion, bribery, or other unethical activities.
  • were involved in arbritration or civil litigation where you were found to violate sales practices.
  • received a final order, from a state securities commission, state authority, federal banking agency, etc., that barred you from an association to that authority or from engaging in securities, insurance, banking and other financial services.
  • participated in fraudulent, manipulative, or deceptive conduct that violated any applicable laws or regulations.
  • had registration revoked or suspended from an accountant, attorney or federal contractor role.
  • filed for bankruptcy within the last 10 years.

The NASD provides a detailed summary of the statutory disqualification process here. In addition, you can view previous statutory disqualification decisions here.

For more information on the U4 Form, Click Here

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