Question

A person may not act as a registered representative or principal unless Financial Industry Regulatory Authority (FINRA)'s eligibility standards regarding training, experience, and competence are met. In all of the following instances, a person may be statutorily disqualified from FINRA membership except?

1) disciplinary sanctions by a financial regulator in the United Kingdom
2) willful misstatements made in an application for membership
3) conviction of a DUI resulting in a fine and probation
4) expulsion by the Chicago Board Options Exchange (CBOE) for violations of trading-floor rules

Answer 1

Out of the given instances that can lead to statutory disqualification from FINRA membership, a DUI conviction is the exception, as it is not directly related to financial industry conduct.

Step-by-step explanation:

A person may not act as a registered representative or principal unless they meet the Financial Industry Regulatory Authority (FINRA)'s eligibility standards regarding training, experience, and competence. Among the provided instances where a person may be statutorily disqualified from FINRA membership, the exception is the conviction of a DUI resulting in a fine and probation. This is because the types of statutory disqualifications that FINRA considers generally pertain to securities or investment related violations, financial crimes, and offenses of moral turpitude. Therefore, a DUI conviction, while serious, does not directly relate to a person's role or behavior in the financial industry. In contrast, sanctions by a regulator, willful misstatements in an application, and expulsion by a trading body like the CBOE directly relate to financial industry concerns and thus can lead to statutory disqualification.