Finra
A registered representative is convicted of a felony. What is the consequence under securities regulations?
A felony conviction within the past 10 years results in statutory disqualification, regardless of whether the felony was securities-related. The person cannot associate with a FINRA member firm unless the firm obtains a
Complete Analysis & Legal Rationale
A felony conviction within the past 10 years results in statutory disqualification, regardless of whether the felony was securities-related. The person cannot associate with a FINRA member firm unless the firm obtains a waiver through a membership application.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.