Reporting - Affect on License

[KaseyNM]

Anyone know the ramifications (if any) of reporting a misdemeanor crime to FINRA, SEC, OCC, and an agency?

 

[DHK]

Many (if not all) insurance companies will ask you the following question to be appointed with them:

Have you ever been charged or convicted of or plead guilty or no contest to any Felony, Misdemeanor, federal/state insurance and/or securities or investments regulations or statutes?


Generally, unless it was a traffic violation... this would be something to be disclosed for the rest of your career. Notice that the question didn't state a time frame.


If you're with a broker/dealer, it may be a cause for dismissal and cause a permanent mark on your U4. Such a disclosure may make it difficult &/or impossible to get hired by another B/D. Question 14b on the U4 discusses misdemeanor disclosures.

http://www.finra.org/web/groups/industry/@ip/@comp/@regis/documents/appsupportdocs/p125047.pdf

Questions 14A and B: Criminal Actions

Questions 14A and 14B pertain to criminal disclosures against an individual, or against an organization while the individual exercised control over it. The questions address felony convictions and charges and specified misdemeanor convictions and charges. All convictions and charges that meet the threshold of Questions 14A and 14B are reportable no matter how long ago they occurred as the questions are prefaced with the wording “have you ever…”

NOTE: Certain criminal events may subject an individual to a Statutory Disqualification. Please refer to the Statutory Disqualification Process at FINRA - Home Page Regulatory Enforcement > Adjudication > National Adjudicatory Council (NAC) >

The U-4 form is the same for FINRA as well as the SEC for being an RIA/IAR.

However, being CHARGED with a crime is different than being CONVICTED of a crime. One of my old managers was charged for robbery back in 1993. This was disclosed on his U-4 as this: "ONE COUNT ROBBERY. FELONY. PLEA OF NOT GUILTY". The disposition stated this: "DISMISSED. 10/25/1993. NO SENTENCE/PENALTY."

In any event... it has to be disclosed.