We understand that there are many scenarios in which a FINRA Member Firm might wish to hire or re-hire a registered representative who has been subject to Statutory Disqualification by FINRA after the representative’s suspension is over. To obtain FINRA’s approval, firms invariably must agree to take on the responsibility of designing and implementing an acceptable plan of heightened supervision for the representative upon registration.
If you wish to hire or re-employ a registered representative who has been subject to Statutory Disqualification by FINRA, your organization must submit a Membership Continuance Application (MC-400) on the representative’s behalf that FINRA must first review and approve before the representative can join the firm.
Hire an attorney who is experienced in guiding Member Firms through the MC-400 application process for prospective hires. Your organization should retain counsel who understands the retail securities industry, and who regularly deals with FINRA staff and attorneys. Qualified counsel can help you properly frame your MC-400 Application and design an appropriate plan of heightened supervision for the representative you want to join your firm so as to maximize your chances FINRA will grant approval for the hire.
Scott Matasar, Esq. is a founding Member at Matasar Jacobs LLC. His legal practice focuses on representing firms and individuals in the retail securities industry. Among other things, he regularly defends clients in FINRA customer arbitration cases, represents advisors under disciplinary investigation by FINRA as well as state and federal regulators, and counsels both firms and advisors on a wide range of securities, regulatory and operational issues, including transition matters.
Scott can be reached at smatasar@matasarjacobs.com, or at 216.453.8181.
