Question

Which of the following describes statutory disqualification of a registered person under SEC rules? (A) An investor invests enough to qualify for the sales load discount required by a mutual fund. (B) The suspension of a registered person from registration with a FINRA member due to SEC rule violations. (C) The failure to determine adequate suitability information from a customer as required by securities law. (D) Violations of a broker-dealer firm's policies by a registered person.

Answer 1

As per the Article III ,Section 4 of FINAR By-laws statutory disqualification is a status that tells that a person/individual is convicted of a securities related crime

Step-by-step explanation:

A registered representative is the person who is registered with a certain brokerage firm and serves as a representative for the same .

There are certain events that can lead to a loss of the membership or registration

A person is said to be statutory disqualified under SEC rules if the person is enjoined temporarily or permanently from violating the securities laws by a court of competent jurisdiction.

In short a person is said to be statutory disqualified if he violates a broker-dealer firms policies.(D)