Thanks to a new industry resource, theSIPA.com, I was treated to a well-written and intriguing essay on FINRA's new definition of 'statutory disqualification.' This revised, broader definition carries with it unforeseen pitfalls for firms like yours when hiring new reps. If you hire someone who has signed a consent agreement with a State regulatory body that includes reference to certain violations, there's a chance that person is now technically 'statutorily disqualified' and ineligible for FINRA membership...and you wouldn't even know it! And guess what? You'd be breaking Conduct Rule 3010(e) by not doing your homework if you hire him or her, completely unaware of this definitional change.
I'm not doing justice to this topic: I suggest you read Alan Wolper's essay on theSIPA.com in order to understand what I'm babbling about... it is worth your time. Go to: http://thesipa.com/asktheregulator.html
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment