Registration Exemptions

The following individuals are exempt from registration:

  • Clerical
  • Non-supervising officers and managers not dealing with customers
  • Non-U.S. citizens working abroad
  • Floor personnel

Non-registered personnel may:

  • Offer to send literature to prospective customers
  • Invite current or prospective customers to attend firm sponsored events
  • Invite prospective customers to speak with a registered representative
  • Discuss account information with existing customers

Non-registered personnel may not:

  • Receive compensation other than salary or hourly wage
  • Solicit orders or new accounts
  • Discuss investment products or services offered by the firm
  • Qualify prospective customers by discussing the individuals financial information

All NYSE member firms that allow non-registered personnel to have contact with existing or potential customers must train the personnel as to the limits on what may be discussed with the existing or potential customers.

Retiring Representatives / Continuing Commissions

A retiring representative may continue to receive commission on the business that they have built over their career, if a contract is in place before the repre­sen­tative’s retirement. A retiring representative may continue to receive commissions on old business only and may not receive commissions on any new business and may not receive finder’s fees. If the retired representative dies, their beneficiary may continue to receive the commissions that were due the representative.

Persons Ineligible to Register

Individuals applying for registration must meet the association’s requirements in the following areas:

  • Training
  • Competence
  • Experience
  • Character

Anyone who fails to meet the association’s or exchange’s requirements in any of the above listed areas may not become registered.  An individual may also be disqualified by statute or through rules for any of the following:

  • Expulsion, suspension, or disciplinary actions by the Securities Exchange Commission (SEC) or any foreign or domestic self-regulatory organization (SRO)
  • The individual caused the expulsion or suspension of a broker dealer or principal
  • The individual made false or misleading statements on the application for registration on Form U4 or Form B-D
  • Felony conviction or misdemeanor involving securities, bribery, falsification of reports, perjury or any other felony within the last 10 years
  • Court injunction or order barring the individual

Series 10 Exam Prep Materials

DISCIPLINARY ACTIONS AGAINST A REGISTERED REPRESENTATIVE

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