Ineligibility for Membership or Association

What this video covers

• Why ineligibility and statutory disqualification describe the same bar under Financial Industry Regulatory Authority (FINRA) By-Laws, and why the exam tries to trick you into treating them as different standards
• The 10-year conviction window for securities-related felonies and disqualifying misdemeanors, and what happens to a qualifying event that falls outside that window
• The full trigger list beyond convictions: Securities and Exchange Commission (SEC) or self-regulatory organization (SRO) suspension, bar, or expulsion; injunctions; willful violations; and false or misleading filings
• How a firm can seek relief for a statutorily disqualified person through the Membership Continuance Application, Form MC-400, and what must happen to the person while that application is pending
• Who faces sanctions when a firm allows unregistered activity: the firm itself, the negligent supervisor, and the unregistered individual, and why FINRA's definition of associated person reaches even unregistered performers of securities functions
• Why supervisors can be sanctioned for mere negligence, not just willful misconduct, when unregistered activity occurs on their watch
• The critical distinction between a pending indictment, which is a reportable event disclosed on Form U4, and a conviction, which is the completed event that actually triggers statutory disqualification