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 FINRA, you could be subject to a "statutory disqualification" under the Exchange Act if you:

  • were convicted, pled guilty or no contest to any felony.
  • were charged or convicted with a misdemeanor involving investments and related to fraud, extortion, bribery, or other unethical activities.
  • were involved in arbitration 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.
  • made a false statement or omitted material information.

Note that the following items are a brief summary of the disclosure questions on form U-4.

FINRA provides a detailed summary of the statutory disqualification process here.

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