About FINRA (2024)

FAQs

What will disqualify you from FINRA? ›

FINRA Disqualification Criteria

Felony convictions for 10 years following the conviction date. Certain misdemeanor convictions for 10 years from the conviction date. Temporary or permanent injunctions for unlawful securities or investment banking activities.

FINRA FINANCIAL INDUSTRY REGULATORY AUTHORITY is authorized by Congress to protect America's investors by making sure the broker-dealer industry operates fairly and honestly. We oversee more than 624,000 brokers across the country—and analyze billions of daily market events.

FINRA is required to process the application within 180 calendar days from the date FINRA receives a substantially complete application for membership.

FINRA Rule 4530(b) requires a firm to report to FINRA within 30 calendar days after the firm has concluded, or reasonably should have concluded, on its own that the firm or an associated person of the firm has violated any securities, insurance, commodities, financial or investment-related laws, rules, regulations or ...

The Series 7 exam is often considered the most difficult securities licensing exam. But, the answer is up to you. If you prepare properly and utilize an online learning tool like ExamFX's Series 7 course, you can approach the test with confidence and earn your Series 7 registration.

The Series 7 exam is considered to be of medium to hard difficulty. The Series 7 exam pass rate is 71%. Candidates must correctly answer 90 of 125 questions to achieve a passing score of 72%. Pass the FINRA Series 7 on your first try with Achievable's online self-study course.

The individual's employment history for the last 10 years—both in and outside the securities industry—as reported by the individual on their last Form U4 [which securities firms use to register investment professionals with self-regulatory organizations (SROs) and states].

The Series 7 exam is challenging, but it's not impossible. It may actually be easier than you expect – as long as you dedicate time to learning the concepts. Knowing which concepts to focus on is half the battle, which is why it's important to enroll in a Series 7 exam prep course.

FINRA Rule 2111 requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer.

According to FINRA rules, you're considered a pattern day trader if you execute four or more "day trades" within five business days—provided that the number of day trades represents more than 6 percent of your total trades in the margin account for that same five business day period.

How do I prepare for FINRA? ›

Whether you're a novice practitioner or a finance expert, earning a Financial Industry Regulatory Authority (FINRA) license is a viable option to help you enter the securities industry. From securities traders to research analysts, there are many specialized qualifications for you to consider.

WHAT DISQUALIFIES YOU ON A U4? Any violations of securities or financial-related laws or regulations will disqualify a person on a U4. Additionally, all Felony convictions and certain misdemeanor offenses involving fraudulent pretenses within the previous 10 years are disqualifications.

In 1943, the Association's Board adopted what has become known as the "5% Policy" to be applied to transactions executed for customers. It was based upon studies demonstrating that the large majority of customer transactions were effected at a mark-up of 5% or less.

Amended Rule 6730(a)(1)(B) would require that a transaction executed on a business day at or after 8:00:00 a.m. ET through 6:29:59 p.m. ET must be reported as soon as practicable, but no later than one minute from the Time of Execution, except that, a transaction executed on a business day less than one minute before 6 ...

FINRA background check disqualifiers include all felony convictions and certain fraudulent misdemeanor convictions within 10 years. Other disqualifications include injunctions from investment or securities activities and expulsions from financial trade organizations.

Charging a customer excessive markups, markdowns or commissions on the purchase or sale of securities. Guaranteeing customers that they will not lose money on a particular securities transaction, making specific price predictions or agreeing to share in any losses in the customer's account.

Violations of securities laws and regulations is a Series 7 license disqualification as are injunctions from investment related activities and expulsions from financial-trade organizations. All felony convictions and certain misdemeanor offenses within the previous 10 years are also disqualifications.

A BrokerCheck report for an individual who meets any of these criteria will typically include the same information categories as outlined above for individuals registered within the last 10 years. BrokerCheck may have limited information for individuals whose last registration ended before August 1999.