Regulatory FrameworkQuestion 375 of 398
A person applying for registration in the securities industry was convicted of a securities-related felony four years ago. This individual is most likely:
a.Automatically approved after a 30-day waiting period
b.Subject to statutory disqualification
c.Required only to complete extra continuing education
d.Exempt from filing a Form U4
Explanation
A felony conviction, or a securities-related misdemeanor, within the past ten years can cause a person to be statutorily disqualified under the Securities Exchange Act of 1934 and FINRA rules. A statutorily disqualified person generally may not associate with a member firm unless FINRA grants relief through an eligibility proceeding. Other triggers include certain regulatory bars and injunctions.
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