Why do you disqualify new applicants for having a “settlement to customer” even though FINRA states that a settlement is “not an admission of guilt or wrongdoing”?
Although a settlement may not be an admission or evidence of misconduct according to FINRA, the NEB considers settlements to be an adverse mark on an advisor’s record. This is due to the fact that settlements occur in response to a serious consumer-initiated complaint. Therefore, effective June 1, 2007, NEB added settlements to the list of disqualifying violations as defined in the membership agreement. All new applicants must have a seven-year record free of settlements, regardless of the circumstances surrounding them.
Related Questions
- Why do you disqualify new applicants for having a "settlement to customer" even though FINRA states that a settlement is "not an admission of guilt or wrongdoing"?
- What percentage from each admission criteria is used for the evaluation of applicants?
- What criteria are used to select from the winners all the applicants who applied?
