Series 7: 13.2.1 Rule 4530 Disclosure Events

13.2.1  Rule 4530 Disclosure Events

FINRA Rule 4530 requires each member to make a report to FINRA whenever the member, or an associated person, “is the subject of any written customer complaint involving allegations of theft or misappropriation of funds or securities or of forgery.” Complaints that don’t contain such allegations don’t trigger this specific reporting requirement; however, the rule requires each member to make quarterly statistical and summary (i.e., non-detailed) reports of all written customer complaints, which must be submitted by the 15th day of the month following the end of the quarter.

FINRA also requires members to report various other Rule 4530 disclosure events through FINRA’s website. These include whenever a member knows or should have known that the member or an associated person:

• • Has been found to violate any securities law or regulation or SRO standard of conduct, or has been named as a defendant or respondent in a proceeding alleging a violation of any securities law or regulation or SRO rule
• • Is denied registration, suspended, expelled, ordered to cease and desist, or disciplined by any regulatory agency or SRO, or is otherwise barred from membership or association by an SRO
• • Is a director, officer, partner, sole proprietor, controlling stockholder, or associated person of (1) a member that was suspended, expelled, or had its registration revoked or denied by any agency or SRO or (2) of a bank or other financial institution that was convicted of or pled no contest to any felony or misdemeanor
• • Is indicted for, convicted of, or pleads guilty or no contest to any felony, or to any misd