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FINRA Rule 4530

Requires the prompt reporting of key events including infractions by and disciplinary actions against staff to FINRA

Rule Overview

Jurisdiction: United States

Regulator: FINRA

Topic: General Requirements

Overview
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Reporting must take place promptly and not later than 30 days after the firm knows or should have known of the existence of the event.

Reportable events include:

  • laws, rules, regulations or standards of conduct violations
  • written customer complaints involving
    • theft
    • misappropriation of funds or securities
    • forgery
  • being named defendent or respondent in proceedings brought by a regulator or self-regulatory organization
  • denial of registration, expulsion, suspension or disciplinary action by a regulator or self-regulatory organization
  • indictment, conviction or guilty or no contest plea to a felony or certain types of misdemeanour
  • directorship, control, ownership or association with a firm or financial institution that has been denied registration, suspended, expelled, convicted or one that had pleaded no contest to a felony or misdemeanour
  • is a defendant or responded in any securities, commodities or financial-related civil litgation or arbitration when a judgment, award or settlement is for an amount over $15,000
  • is a defendant or respondent in a claim for damages by a customer, broker or dealer when a judgement, award or settlement is for an amount over $25,000
  • is subject to a statustory disqualification

Any associated person is obligated to report to the member firm the existence of any of these events if connected to them.

Statistical and summary information on written customer complaints must be provided to FINRA on a quarterly basis.

The requirements under this rule do not diminish the disclosure responsibilities connected to Forms BD, U4 or U5.

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