Series 14: 5.2.5. Statutory Disqualification

5.2.5. Statutory Disqualification

Certain conduct and behavior can subject a firm to severe penalties. Under the Securities Exchange Act of 1934 (and FINRA bylaws), a firm or individual can be statutorily disqualified as a result of certain events. A statutory disqualification prevents a person or member firm from continuing to work or operate in the securities industry. Statutory disqualification can result for members and associated persons who:

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

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

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

•Have associated with any person known to have been expelled or suspended or to have caused the same of another broker or dealer

•Have been subject to temporary