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SIE Chapter 10: Self-Regulatory Organizations (SROs)

Terms in this set (140)

a. has been found to have violated any provision of any securities law or regulation.
b. is the subject of any written customer complaint involving allegations of theft or misappropriation of funds or securities, or forgery.
c. is named as defendant or respondent in any proceeding brought by a regulatory organization.
d. is denied registration or is expelled, enjoined, or directed to cease and desist.
e. is indicted or convicted of any felony or any misdemeanor that involves securities.
f. is a director, controlling stockholder, partner, officer, or sole proprietor of a brokerdealer, investment company, investment adviser, underwriter or insurance company which was suspended, expelled, or had its registration denied or revoked. a defendant or respondent in any securities or commodities related civil litigation or arbitration which has received a judgment, award, or settlement exceeding $15,000. (When the firm, rather than a person, is the defendant or respondent, reporting is required if the amount exceeds $25,000).
h. is the subject of any claim for damages by a customer or broker-dealer which is settled for an amount exceeding $15,000 (when the firm, rather than a person, is the defendant or respondent, repotting is required if the amount exceeds $25,000).
i. is associated in any business or financial activity with any person who is subject to a "statutory disqualification."
j. is the subject of any disciplinary action taken by the member against any person associated with the member involving suspension, termination, or the withholding of commission or imposition of fines in excess of $2,500.
a. FINRA requires member firms' websites to include a readily apparent reference and hyperlink to BrokerCheck on:
1. The initial Web page that the firm intends to be viewed by retail investors, and
2. Any other Web page that includes a professional profile of one or more registered persons who conduct business with retail investors.
b. Firms may elect to satisfy the requirement of the rule by using "a deep link" to the firm or associated person's individual BrokerCheck pages.
c. Exceptions to the rule include:
1. A member firm that does not provide products or services to retail investors; and
2. A directory or list of registered persons limited to names and contact information.
3. Third party websites
4. Social media sites such as Twitter and Linked-in
5. Hyperlinks and reference is NOT required on each email or text message sent by a member firm or RR to a retail investor.
d. Factors that must be considered by the Firm include:
1. Placement — whether the reference and hyperlink are visible as soon as the person lands on the website or only after significant scrolling. If scrolling is required, it must be clear that further information is available below the screen that is being viewed. Also, such reference and/or link cannot be "buried" in a long paragraph.
2. Font size — the font size must be similar in size to the font size of Other information on the page.
3. Font Color — whether the font color of the description and hyperlink contrasts or blends in with the websites background.