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Statutory Disqualification of Registered Representatives

An individual may not register as an associated person (e.g. registered rep) if subject to a statutory disqualification.  FINRA may also deny registration – indefinitely – to an individual who is not subject to a technical statutory disqualification (e.g. a securities felony conviction more than ten years ago) on the grounds that the individual lacks the character and fitness to participate in the securities industry. For example, FINRA could deny registration to an individual who was convicted of murder, even if it occurred more than ten years ago.