Final answer:
FINRA bars or suspends an Associated Person to penalize rule violations and maintain industry integrity. Member firms are strictly prohibited from employing or associating with barred individuals, and those suspended are required to temporarily cease their professional activities within the industry.
Step-by-step explanation:
If FINRA bars or suspends an Associated Person, member firms are not permitted to associate in any capacity with the individual. When FINRA takes disciplinary actions such as barring or suspending a person, it is signaling that the individual has violated industry rules or regulations.
This ban is critical for maintaining the integrity of the securities industry and protecting investors. Member firms that disregard this prohibition may themselves face significant sanctions, including fines and additional disciplinary actions by FINRA.
Associated Persons who are barred cannot be hired by member firms, and those who are suspended must discontinue their duties for the duration of the suspension. These rules are in place to reinforce the seriousness of the penalties and to ensure that all FINRA members adhere to the same high standards of professional conduct.