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
