Series 14: 5.2.8. Statutory Disqualification

5.2.8. 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-dealer

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

• Have been subject to temporary an