Question

If a person of a FINRA member firm is subject to action by a State or Federal Securities, Insurance or Commodities regulator (SD - Statutorily Disqualified Employee), what consequences can they face?

1) Suspension from the firm
2) Termination from the firm
3) Fines and penalties
4) Loss of license
5) All of the above

Answer 1

A person of a FINRA member firm, if found to be a Statutorily Disqualified Employee, can face several consequences such as suspension, termination, fines, penalties, and the loss of license, depending on the severity and nature of the regulatory infraction.

Step-by-step explanation:

If a person of a FINRA member firm is subject to action by a State or Federal Securities, Insurance, or Commodities regulator and is considered a Statutorily Disqualified Employee, the consequences they can face include

1. Suspension from the firm
2. Termination from the firm
3. Fines and penalties
4. Loss of license
5. All of the above

This is because regulators like the SEC have the authority to enforce compliance with consumer protection laws and take action against violations within the banking and investment sectors. The actions taken by regulatory bodies are aimed at maintaining the integrity of the financial markets and protecting consumers and investors alike.