Statutory Disqualification
Conditions that bar a person from associating with a member firm: any felony conviction or securities/money-related misdemeanor within the past 10 years, plus certain regulatory bars, expulsions, and false statements on registration forms.
Disqualifying events must be disclosed on Form U4, and firms must investigate applicants’ backgrounds. Bars by the SEC or an SRO, willful false U4 statements, and certain foreign equivalents all trigger the same status.