Statutory Disqualification

Prohibited conduct includes statutory disqualifying events. A statutory disqualification prevents a broker-dealer, municipal advisor, or associated person from continuing to work or operate in the securities industry. Statutory disqualification can occur before someone has been hired. This usually results from an individual answering affirmatively to some of the questions on the MA-I or U4. Once an individual has started a job as a broker-dealer, municipal advisor, or associated person, statutory disqualification can also occur if the individual:

•Has been expelled or suspended from membership in any self-regulatory organization, domestic or foreign, or denied trading privileges anywhere

•Has been barred or suspended from associating with a member of any self-regulatory organization

•Has been found by his conduct while associated with a broker-dealer to be a cause of any effective suspension or expulsion of another broker or dealer

•Has associated with any person known to have been expelled