A registered representative has been indicted for theft, which was unrelated to his employment at the member firm. Which of the following statements is TRUE?

A. No action is required by the registered person until a verdict has been reached.

B. No action is required since the theft was unrelated to the registered person's employment.

C. The registered person is permitted to remain employed by the member firm, but the event must be reported to FINRA.

D. The registered person is not permitted to remain employed by the member and the event must be reported to FINRA.

Question

Social Studies

Helena

12 February, 10:59

A registered representative has been indicted for theft, which was unrelated to his employment at the member firm. Which of the following statements is TRUE?

A. No action is required by the registered person until a verdict has been reached.

B. No action is required since the theft was unrelated to the registered person's employment.

C. The registered person is permitted to remain employed by the member firm, but the event must be reported to FINRA.

D. The registered person is not permitted to remain employed by the member and the event must be reported to FINRA.

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Answers (1)

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Melany Rivas · Answer 1

Answer: C. The registered person is permitted to remain employed by the member firm, but the event must be reported to FINRA.

Explanation:

If an individual has been indicted of a crime which may be any felony or robbery, extortion, theft, forgery and they have a membership with FINRA they will have to be reported to it.

In some instances this may also include shoplifting or drunk driving.

However if the person has never been convicted before there is no need to have them removed from their job.